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MORNING BID AMERICAS-Powell tees up after megacaps scatter

A look at the day ahead in U.S. and global markets from Mike Dolan Wall St stocks' worst day in practically 3 weeks sets the background for Wednesday's congressional testimony from Federal Reserve chair Jerome Powell, with markets beginning to get antsy about whatever from Trump to Taiwan.

In a packed day for major macro occasions - including a Bank of Canada policy decision, Britain's annual spending plan, key U.S. labor market updates and Super Tuesday primary outcomes - the primary market focus was likely to be on Powell's appearance.

In many respects, Powell and his group have rates of interest markets where they desire them - and need to be comfortable now that the Fed's December message on modest rate cuts later on this year has been followed at last ahead of its March 20 policymaking conference.

Tuesday's soft service sector survey for February did push up the amount of relieving futures markets are pricing for 2024. At 88 basis points they remain close to the most recent Fed projections for some 75bps of cuts this year and the very first move is still not fully priced till July.

Given that, Powell may not want to rock the boat too much - He might nod to the risks associated with a. re-acceleration of the economy or even warn caution recent stock. market enthusiasm in the long question-and-answer session that. follows his speech on Capitol Hill.

A possible increase in long run neutral interest rate. presumptions, the pace of the Fed's balance sheet rundown and. election year policy concerns might also be available in the exchanges.

However, almost as if they were anticipating a slap on the wrist,. costly U.S. megacap stocks tumbled on Tuesday ahead of the occasion. - with a range of factors pointed out, from economic and political. threats in China to antitrust moves in Europe and the Super. Tuesday klaxon on the White Home race.

Of the so-called Spectacular Seven of leading stocks, just. expert system poster child Nvidia handled to. gain on the day. The S&P 500 lost 1% and the Nasdaq. 1.7%, although futures clawed back about a third of that. ahead of Wednesday's bell.

In China and Taiwan, where the Mag 7 revenue direct exposure is. estimated to be close to 20%, the state of mind stayed edgy after. yearly federal government plans were laid out by the National People's. Congress on Tuesday. The CSI300 edged lower again. overnight, despite the fact that Hong Kong recuperated some losses.

Strategists puzzled over how a modest 3% budget deficit. target would contain enough of a financial increase to meet the. government's ambitious 5% economic development target for the year.

And yet rising defence budget and the NPC report's. elimination of language about Taiwan that consisted of the phrase. serene reunification were most jarring to those fretted. about aggravating geopolitics.

The prospect of Donald Trump's possible go back to the White. Home, with promises of 60% tariffs on Chinese imports, will not. have actually alleviated those issues much as he dominated today's multitude. of Republican primaries.

On Tuesday, Trump won the Republican votes in a lots states. and brushed aside competing Nikki Haley to all however clinch his third. successive presidential nomination even in the face of a litany. of criminal charges. Once again casting Trump as a risk to American. democracy, Biden took the equivalent Democratic celebration nods and. established what seems a re-run of the 2020 election race.

Somewhere else, and potentially partly associated to the political. unpredictabilities, gold and bitcoin remained well quote.

Bitcoin suffered vertigo on Tuesday after briefly striking. record highs above $69,000 and retreated sharply in a wild 14%. intraday swing. It was back higher about $66,500 on. Wednesday, even if still shy of the new peak.

Gold rates likewise breached December's record peak briefly on. Tuesday and held the majority of those gains today.

The dollar index were lower more usually.

With the Bank of Canada anticipated to leave its policy rate. the same at 5% later on Wednesday, the focus will be on the. accompanying statement in addition to Guv Tiff Macklem's. post-decision interview to see if an all-clear on inflation is. forthcoming. Canada's dollar was stable overnight.

Britain's pound and government bond yields. risen ahead of finance minister Jeremy Hunt's. yearly budget speech. Regardless of the fragile state of the general public. finances, Hunt is expected to use tax cuts to voters ahead of. this year's election - including a reported 2 percentage point. cut in social security contributions.

Key journal items that might supply direction to U.S. markets later. on Wednesday:. * Federal Reserve Chair Jerome Powell provides semiannual. financial policy testament before your house Financial Solutions. Committee; Fed concerns Beige Schedule on economic conditions; San. Francisco Fed President Mary Daly and Minneapolis Fed chief Neel. Kashkari speak. * U.S. Feb ADP economic sector tasks report, Jan JOLTS task. openings information, Jan wholesale sales/inventories. * Bank of Canada policy decision. * British financing minister Jeremy Hunt provides yearly spending plan to. parliament. * U.S. corp incomes: Campbell Soup, Brown-Forman, JD.com and so on

(source: Reuters)