FINANCIAL MARKET EXPECTS POWELL'S SPEECH

Financial market expects Powell's speech

Budrigantrade's outlook for the day on European and global markets. 

At the beginning of a crucial week, investors have discovered their appetite for risky assets, despite China's disappointing announcement of a modest target for economic growth this year. European stocks are expected to continue the momentum.

As traders await January retail sales data for the Eurozone later in the day, the continent-wide STOXX may aim for another record high following its best weekly performance since the beginning of the year.

The market, on the other hand, is totally focused on Fed Chair Powell's two-day testimony before the U.S. Congress on Tuesday and Wednesday and the February jobs report on Friday, both of which are expected to determine the course that the U.S. central bank will likely take in the near future.

Investors have come to accept (sort of) the fact that the Federal Reserve will likely keep interest rates higher for a longer period of time; however, there are new concerns that robust economic data will prompt the central bank to return to jumbo hikes.

Over the weekend, speakers at the Fed continued to use pessimistic language, with San Francisco Federal Reserve Bank President Mary Daly being the latest to speak out against inflation.

Powell is expected to be hawkish this week, according to the market, but given that his testimony comes before the jobs report is released, he will probably try to keep all options open.

As the annual session of the National People's Congress got underway in China, the country's leadership established a goal for this year's economic growth of 5%, which analysts characterized as conservative and pragmatic.

In the business world, Italian state lender CDP has offered to acquire Telecom Italia's (BIT:) fixed-line network. competing with KKR's offer in the United States.

China intends to increase GDP by about 5% by 2023.

Important events that could have an impact on markets on Monday.

Things that happen in the economy: Retail sales in the Eurozone in January, S&P Global in February (NYSE:) PMIs for the Eurozone, France, and Germany.

Speakers: Philip Lane, Chief Economist at the ECB.

Financial market expects Powell's speech