Economic calendar: Markets stay calm amid geopolitical tensions

• Geopolitical tensions in Asia are on the rise

• Powell to testify before Senate Banking Committee

• US housing market data and DOE report

Markets seem to be more cautious today with Asian indices trading lower and European futures trading flat against yesterday's cash close. Tensions in Asia continue to boil with another clash between Indian and Chinese forces as well as North Korea's rejection of South Korea's offer to de-escalate. Markets are looking past these developments for now but markets could quickly catch up to reality in case military actions intensify. Traders should follow newsflow carefully for any developments.

There are some interesting readings scheduled for today with US housing market data and the DOE report being at the top of the agenda. Powell will hold the second day of congressional hearings today but it is unlikely that he will deviate much from the message sent yesterday.

10:00 am BST - Euro area, CPI inflation for May (final).

• Headline. Preliminary release: 0.1% YoY

• Core. Preliminary release: 1.1% YoY

1:30 pm BST - US, housing market data for May.

• Building permits. Expected: 1225k. Previous: 1066k

• Housing starts. Expected: 1093k. Previous: 891k

1:30 pm BST - Canada, CPI inflation for May. Expected: 0% YoY. Previous: -0.2% YoY

3:30 pm BST - DOE report on change in oil inventories.

• Crude Oil. Expected: +0.5 mb

• Distillates. Expected: +2.65 mb

• Gasoline. Expected: -0.2 mb

5:00 pm BST - Powell testifies in Congress. Powell will appear before the House Financial Services Committee today to hold the second day of congressional testimony. Fed Chair praised fiscal support yesterday in front of the Senate Banking Committee but warned that the economy still needs support. Today's event is likely to be a repeat of the same message therefore there may be no major reaction on the markets.