Market optimism couldn’t survive to Jerome Powell’s testimony yesterday, as he said that a recession is possible, and that calling a soft landing is ‘very challenging’ under the current circumstances.

Major US indices closed the session slightly in the negative. Powell will testify today, as well, but most of the negative pricing is certainly done by now.

In commodities, the barrel of American crude extended losses below $103 yesterday, BP fell and iShares Diversified Commodity index fell below the 100-DMA for the first time this year, and deeper decline is possible, given the risks of tighter monetary policies to the global economy.

The British FTSE index, which has a high concentration of oil and mining stocks lose its advance versus its US peers.

Regarding the individual stocks, Altria lost near 10% on news that Juul’s e-cigarettes could be banned, and Alibaba gained on news that Ant Group will apply for a key financial license as soon as this month, and the People’s Bank of China could accept it.

This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

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