Global stock markets slipped on Tuesday and the dollar held near three-week highs as investors braced for comments later this week from Federal Reserve chairman Jay Powell that could yield clues on the central bank’s next steps.

According to futures trade, European and US stocks will slip back after declines in Asia. London’s FTSE 100 was expected to fall 0.2 per cent, with the Xetra Dax 30 called down 0.6 per cent,

Hong Kong’s Hang Seng saw the largest dip, down 0.7 per cent and the CSI 300 in mainland China slid 0.5 per cent. Japan’s Topix nudged down 0.2 per cent and in Australia, the S&P/ASX 200 slipped 0.2 per cent as financials fell 0.6 per cent after the country’s financial regulator diluted planned capital requirements.

Those falls followed a second consecutive day of losses for Wall Street with the S&P 500 down 0.5 per cent, after hitting a record high last week. 

Expectations for a 50 basis point interest rate cut faded last week after non-farm payrolls came in above forecasts, with focus now turning to Mr Powell’s monetary policy testimony to Congress on Wednesday. Before that, he is also due to speak on Tuesday to a conference given by the Boston Fed, at 13.45 London time.

The dollar index held around a three-week high at just over 97 points, leaving it 1.4 per cent above its June closing low.

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