Global Markets Watchful Ahead of Fed Chair's Testimony Amid Cooling U.S. Labour Market

Global shares displayed a mixed performance as investors awaited a statement from U.S. Federal Reserve Chair Jerome Powell, anticipating potential rate cuts due to slowing labour market data. European and Asian indices showed varied movements, while U.S. futures pointed towards an optimistic opening. Political shifts in France and economic data in the U.S. also drove market trends.

Global shares exhibited mixed trends on Tuesday as investors awaited remarks from U.S. Federal Reserve Chair Jerome Powell concerning possible rate cuts, following signs of a cooling U.S. labour market.

The Euro STOXX 600 declined by 0.2%, with energy shares leading the fall due to decreasing oil prices. However, U.S. futures indicated a positive opening, with S&P 500 and Nasdaq futures climbing 0.2% and 0.4%, respectively. On Monday, Wall Street indices had reached record highs.

Powell is scheduled to testify before Congress, raising speculations that soft labour market data might prompt a rate cut in September. Amid this, political developments in France led to fluctuations in the euro, although it stabilized near a four-week high. German and French bond yields also responded ahead of Powell's testimony.

(With inputs from agencies.)