Geoffrey Smith 

Investing.com — Jerome Powell, the Chairman of Federal Reserve, appears before Senate Banking Committee. He will pledge to end inflation from becoming “entrenched”. President Joe Biden may support Congressional Democrat legislation which overrides state laws that aim to tighten elections procedures. The momentum built by Monday’s second session is expected to continue. In addition, the U.S. Short Term Energy Outlook as well as weekly oil inventory data provide double news for the oil market. What you need to know for financial markets on Tuesday, 11th of January. 

1. Powell, Senate 

Jerome Powell will be heading to Capitol Hill in order for Senate confirmation of his second term as Federal Reserve Chair. According to prepared remarks released ahead of his (1500 GMT), Powell will say he’s .

These comments are a day ahead data expected to show an annual peak in December. This is due to continued supply chain problems and labor shortages. There has also been a high level of disposable savings as a result of fiscal support mechanisms which have supported demand throughout the pandemic.

Raphael Bostic from Atlanta Fed stated that although he expected three interest rate rises in 2018, there was a possibility of another. Both the Cleveland Fed President, and Kansas City Fed president will be speaking at 9:00 AM ET.

2. Biden takes aim at filibuster

U.S. President Joe Biden is expected to throw his weight behind measures to curtail the Senate’s ability to thwart legislation by ‘filibuster’ in a speech later.

This speech is made just days before the House of Representatives will debate federal legislation that will stop state laws making it more difficult for people to vote. A slew of Republican-controlled states such as Texas have introduced legislation in recent months that they say are aimed at preserving election integrity.

The House is expected to vote on a Democratic-sponsored bill. This would create a national holiday for election day, permit early voting nationwide for 15 days and require states to accept mail-in ballots.

The reform of the filibuster rules may lead to more determined government but could also upset the fragile constitutional balance between federal and state legislatives. The state has always had final say in setting their voting procedures. 

3. Stocks to Open Higher

U.S. stocks are expected to open higher later, sustaining the momentum they build in the second half of Monday’s trading session.

The market had reversed sharply halfway through Monday’s trading on perceptions that the latest wave of Covid-19 may yet substantially slow the economy due to mass absenteeism by workers forced to quarantine. The market shifted slightly in response to the concerns of a fourth rise of interest rates during the year that were raised by Goldman Sachs analysts (NYSE:), and JPMorgan analyst (NYSE:).

At 6:20 AM ET they had risen 78 points or 0.2%. They were also up 0.3% and 0.5% respectively.

Rivian stock is expected to focus on later after news that Rod Copes (head of operations) has been fired.  The second day of JPMorgan’s annual investment conference will be the focus of market attention.

4. Omicron tests China still

The Omicron variant of Covid-19 continues to pose challenges for China’s zero-tolerance policy. The evidence of community spreading of the new version in Anyang has led to the closure of a second city by the provincial authorities of Henan.

In addition, a mass-testing campaign for inhabitants of Tianjin, home to the world’s fourth-busiest port, continues. Last week, Ningbo’s restrictions caused a dramatic drop in trucks available to transport goods from and to the port.

Hong Kong closed the airport for arrivals from 150 other destinations, however

5. Petroleum oil rises ahead of API, STEO

As the market continued to focus on Omicron, the short-term dip of crude oil demand caused by Omicron, and the challenges facing major producers later this year when there is more demand for it, prices for crude oil rose.

Futures rose 1.6% to $79.34 per barrel by 6:30 ET while they were at $81.98 per barrel.

The American Petroleum Institute’s weekly estimation of U.S. crude oil and distillate stock will be released at 4:30 PM ET. Meanwhile, the Energy Information Administration will publish its short-term energy outlook.