Daily summary: Powell speech sparks volatility on the markets

• Majority of European indices finished today's session slightly higher,  thanks to solid performance of energy stocks, with DAX being an exception (-0.16%). 

• ECB's Schnabel said inflation slowdown is not yet linked to ECB policy. The decline is due to energy.

• BP reported a record profit, increased dividend and a $2.75 billion share buyback, while Berenberg downgraded Airbus SE's stock to "sell" from "hold".

• Major Wall Street experienced elevated volatility thanks to FED Chair Powell. Equities rose at the beginning of his speech as he reassured markets that the disinflationary process has begun, particularly in the goods sector and expects inflation to drop significantly in 2023. 

• However moods reversed completely after the FED Chair warned that if strong labor market reports or higher inflation reports continue, the policymakers may need to raise rates more than is currently priced in.

• The Dow Jones is trading 0.60% lower, while the S&P 500 and Nasdaq 100  fell 0.2% and 0.10% respectively. Earlier Fed's Kashkari said that due to the overheated labour market, lowering inflation is more difficult and Fed may have to hold rates at a higher level for longer.

• Zoom announced a 15% cut in its global workforce.

• Microsoft unveiled a new Bing search and Edge browser powered by AI.

• BoC Governor Macklem believes that if economy develops as forecast and inflation falls as predicted, more rate hikes will not be needed

• OIL.WTI rose over 3.0% and tested local resistance at $77.00 as the terminal at Turkey's Ceyhan port, which exports Azeri crude oil, is set to be closed until Wednesday as a precaution after major earthquakes hit the country. 

• US EIA raises forecast for 2023 world oil demand growth by 60,000 bpd, now sees 1.11 mln bpd YoY increase.

• NATGAS bounced off recent lows at $2.34 as EIA sees 2023 US Natural Gas consumption at 87.04 bcfd in February STEO report, up from a forecast 86.74 bcfd in January.

• Precious metals trade mixed amid weaker dollar and elevated treasury yields. Gold attempts to break above the $1875 mark, while silver continues to move towards key support at $22.00.

• The US dollar weakened sharply after Powell's initial comments, however erased all losses at the end of the interview. The EURUSD pair returned to major support at 1.07. Nevertheless, the greenback weakened against JPY, CHF and AUD.

• Major cryptocurrencies erased some of the early gains, however are still trading higher. Bitcoin oscillates above the $23000 mark, while Ethereum hovers near local resistance at $1650. 

USDCAD has been recently trading within the descending channel. Despite a dynamic rebound from the support at 0.9085, the currency pair failed to break above the upper limit of the channel. According to classical technical analysis, this strengthens downward move. However, should the upward movement resume, in addition to the channel, it is worth paying attention to the upper limit of the 1:1 structure at 0.9304 and the EMA100 around 0.9395. Source: xStation5