Economic calendar: Powell and earnings from US retailers

• Markets rally on vaccine hopes and EU stimulus

• Powell to appear in Senate in the afternoon

• US retailers to report earnings

Investors remain in upbeat moods thanks to promising results of Moderna's vaccine and a big recovery fund agreed on by France and Germany. Meanwhile, traders almost completely play down heating Sino-US tensions and deteriorating trade relationship between Australia and China. Powell's speeches are always seen as a big event but text for today's appearance before the Senate Banking Committee was already released and the event should not be too surprising.

10:00 am BST - Germany, ZEW index for May. Expected: 32 pts Previous: 28.2 pts

1:30 pm BST - US, building permits for April. Expected: 1000k Previous: 1350k

1:30 pm BST - US, housing starts for April. Expected: 927k Previous: 1216k

3:00 pm BST - Powell appears before the Senate Banking Committee. Fed Chair Powell will appear before the Senate Banking Committee today. However, the text of his remarks was released overnight therefore speech itself may be a non-event. Powell will say that rates will remain low until the economy gets back on track.

9:40 pm BST - API report on oil inventories. Expected: -0.5 mb Previous: +7.6 mb

Noteworthy US earnings releases

• Advance Auto Parts (AAP.US) - before market open

• Kohl's Corporation (KSS.US) - before market open

• Home Depot (HD.US) - before market open

• Walmart (WMT.US) - before market open