European stocks are making small gains again on Tuesday, benefiting from the relatively calm start to the week.

The US returns following the bank holiday weekend which could see activity pick up, with particular focus on what the various central bankers have to say. Jerome Powell’s testimony in Congress on Wednesday and Thursday will naturally be the highlight but in this rapidly changing environment, all views will have the potential to get things moving.

There’s no doubt that the next few days have far more on the calendar so investors may take the opportunity to breathe and take stock of the situation. It’s been a turbulent couple of weeks and the rest of the summer is likely to bring more of the same so these periods of reflection are welcome.

With that in mind, these small recoveries in stock markets shouldn’t provide any comfort. Everyone is hunting for the bottom but there’s a huge cloud of uncertainty over the outlook and the data isn’t yet showing any encouraging signs. Recession is increasingly becoming the base case and so equities are vulnerable to further losses.

Bitcoin remains vulnerable

Bitcoin is holding on in there after breaking USD 20,000 over the weekend but despite breaking back above here early in the week, it remains highly vulnerable to another plunge below. I can’t imagine all of the negative headlines are behind us as far as the crypto industry is concerned and the wider financial market environment remains unfavourable.

For a look at all of today’s economic events, check out our economic calendar: www.marketpulse.com/economic-events/

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Plenty of action to come - MarketPulseMarketPulse