In single shares, Saxo Bank head of equity strategy Peter Garnry recommends keeping an eye on Sky post- the London open as US media giant Comcast has upped its bid for the company to £12.50/share, 16% up from rival Fox's current bid.
Also noting the broad market pause ahead of Powell's testimony, Garnry reports that the Nikkei 225 pulled ahead overnight led by technology firms and automakers, adding that retail shares have been the best performing sector over the past month.
"Despite this we recommend and underweight or short stance on retail as valuations remain very expensive," says Saxo's equities head.
Looking at the macro data, Garnry says that the US releases have grown increasingly mixed of late with the most recent Dallas Fed manufacturing release coming in ahead of expectations while new home sales disappointed.
For more on equities and technical analysis of some key forex pairs, watch today's Morning Call in full.