| Good morning. Traders await Powell remarks, Israel says troops have entered the "heart" of Gaza City and Xi is due to meet US business leaders. Here's what's moving markets. — David Goodman Federal Reserve Chair Jerome Powell leads a suite of central bank speakers today, as traders stay alert to signs monetary authorities will push back on bets for a pivot to easy policy.
New York Fed President John Williams and three other policy makers are also due to make separate appearances. According to Todd Schubert, the Dubai-based senior fixed-income strategist at Bank of Singapore, "Fed speakers will attempt to jawbone and cool market expectations for rate cuts. The market is underestimating the Fed's resolve in bringing down inflation to 2%.'' Israel said its troops have entered the middle of Gaza's main city, as they continue their operation against Hamas. "IDF forces are in the heart of Gaza City," Defense Minister Yoav Gallant said late Tuesday, referring to the Israel Defense Forces. "They came from the north and the south. They stormed it in full coordination between land, air and sea forces." Israel describes Gaza City as the "center of gravity" of Hamas's operations. The government is determined to end the militant group's rule over the strip following its attack on southern Israeli communities on Oct. 7, which killed around 1,400 people. Chinese President Xi Jinping is set to be the guest of honor at a dinner with top US business executives when he visits San Francisco for the Asia-Pacific Economic Cooperation summit next week, according to people familiar with the matter. The US and China have been working to stabilize relations this year and hundreds of people are expected to attend the dinner for Xi organized by business groups, including chief executive officers of major US companies. The meeting comes amid China's faltering efforts to win back foreigners as data shows more direct investment flowing out of the country than coming in, suggesting companies may be diversifying their supply chains to reduce risks. Europe's Stoxx 600 fell 0.1% and US equity futures traded little changed. The 10-year Treasury yields climbed by three basis points to 4.6%. Oil held near a three-month low as a forecast drop in US gasoline consumption added to a growing array of indicators suggesting the demand outlook is worsening. Aside from the flurry of Fed speakers, the US is also reporting mortgage and inventory data later today. Earnings include Disney, Biogen and Beyond Meat. The Magnificent Seven stocks including Apple and Nvidia have gained almost 90% so far this year. Is it time to short big tech? What contrarian signal is the best to follow to enter the market? Which asset is the hedge against any potential equity losses during the times when bonds fail to serve as a buffer? Share you views in the latest MLIV Pulse survey. This is what's caught our eye over the past 24 hours. When war breaks out in the Middle East the first impulse for everyone is to assume oil prices will rise. This is the case, even when the conflict doesn't involve any oil-producing areas. After Hamas's Oct. 7 attack on Israel, the price of crude instantly jumped. Perhaps it reflected concern the conflict will widen across the region (still possible) or expectations for more forceful sanctions against Iran. Or possibly it was just reflex. Either way, the move has way more than unwound. As of this morning, WTI crude is below $77/barrel. Meanwhile, futures for wholesale gasoline are now at their lowest level of the year, thanks to both the decline in oil prices, and refiner margin compression. Again, obviously anything is possible in terms of the war broadening out. But clearly, it's not what most people might've anticipated one month ago. Meanwhile, it might be time to watch again what the White House does with refilling the SPR and whether it will engage in anymore "short covering" after selling off a substantial amount near the peak. Follow Bloomberg's Joe Weisenthal on Twitter @TheStalwart Like Bloomberg's Five Things? Subscribe for unlimited access to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. | 
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