By Amanda Cooper
LONDON, March 7 (Reuters) – Global stocks were mostly flat and the dollar rose on Tuesday, ahead of testimony from Federal Reserve Chairman Jerome Powell, which could offer clues to the outlook for U.S. rates as weak Chinese trade data weighed on oil.
* Data showed China’s exports and imports fell sharply in January-February, reflecting a slowing global economy and weak domestic demand, which hurt Chinese businesses, while the yuan rose by against the dollar.
* Rough shipments to China fell in January and February, raising concerns about demand from the world’s biggest importer, weighing on the price of rough.
* Brent crude futures, which are mostly flat this year, rose 0.11% to $86.29 a barrel, as did U.S. crude, which rose 0.15% to 80, $58.
* The MSCI Global Equity Index traded slightly higher at 641.60, near the two-week high hit on Monday.
* Yields on 10-year Treasury bills, which have more than doubled in the past 12 months, fell 5 basis points to 3.93%.
* Yields on two-year bonds, more sensitive to changes in interest rate expectations, fell 4 basis points to 4.857%. Two-year yields have more than tripled in the past year to almost 5%, their highest level since 2007.
* Money markets show traders believe US interest rates will hit just under 5.5% in September, rising from the current range of 4.50% to 4.75%. The expected maximum was close to 4.7% just a month ago.
* Powell begins his biannual two-day appearance before Congress on Tuesday. Investors will be attentive to his declarations to know his opinion on the possible evolution of interest rates in the United States.
* Futures traders are pricing in a 76% chance of the Fed raising rates by 25 basis points at its March 21-22 meeting and a 24% chance of a 50 basis point hike.
* In Europe, a series of results helped propel the STOXX 600 into positive territory, up 0.3%, helped by gains in healthcare and industrials stocks.
* US stock futures were higher, with the S&P 500 e-minis gaining 0.2% and the Nasdaq 100 futures adding 0.3%.
* The dollar rose against a basket of six currencies, helped by gains against the euro, which fell 0.2% to $1.0661. The dollar was down 0.2% against the yen and traded at 135.69 yen, below last week’s high of 137.10.
(Additional reporting by Scott Murdoch in Sydney; editing in Spanish by Ricardo Figueroa)