US equities ended mixed overnight as there was some support on expectations that Fed would delay further rate hike. But worries on growth also persisted. DJIA lost -99.64 pts or -0.62% to close at 15914.74. S&P 500 just ended slightly lower by -0.35 pts or -0.02% to close at 1851.86. Nasdaq, on the other hand, rose 14.83 pts or 0.35% to close at 4283.59. Nonetheless, Asian markets are generally lower today with Nikkei trading down -370 pts or -2.3% at the time of writing. Hong Kong HSI is down -730 pts or -3.8% as it's back from holiday. WTI crude oil extends recent fall and breaches 27 handle. In the currency markets, Yen and Swiss Franc remain the strongest major currencies for the weak on risk aversion. Canadian dollar is the weakest one on renewed weakness in oil and that's closely followed by Dollar.
Fed chair Janet Yellen said in the testimony to House Financial Services Committee that she didn't expected FOMC " to be soon in the situation where it is necessary to cut rates," even though "there is always a risk of recession". On the other hand, she still expected Fed to continue with "gradual" rate hikes. In her prepared remarks, she also noted that "ongoing employment gains and faster wage growth should support the growth of real incomes and therefore consumer spending." And, "global economic growth should pick up over time" with loose monetary policies elsewhere in the world. However, she did also note that financial conditions "have been less supportive to growth" Also, there were the "downside risks" regarding China. And, "should any of these downside risks materialise, foreign activity and demand for US exports could weaken and financial markets could tighten further."
On the data front, New Zealand business NZ manufacturing index rose to 57.9 in January. Australia consumer inflation expectations rose 3.6% in February. UK RICS house price balance dropped to 49 in January. Swiss CPI will be a main feature in European session. Canada will release new housing price index. US will release jobless claims while Fed chair Yellen will have her second day of testimony to Congress.