Lower open likely for the U.S markets Tuesday after key U.S. stock index futures looked lower on Tuesday morning.

At 6:20 a.m. ET,  Dow Jones futures showed a negative open of more than 120 points. Futures on the S&P and Nasdaq were also down.

Market participants are now waiting for Federal Reserve Chairman Jerome Powell’s testimony before the Congressional panels on Wednesday.

Powell’s testimony comes after a stronger-than-expected jobs report that diluted hopes of a July rate cut.

A public speech by Powell is also scheduled on Tuesday at 8:45 a.m. ET on the topic of bank stress tests.

Traders priced a 100 percent probability of a Fed rate cut in July, said the CME Group’s FedWatch tool.

On data, the new job openings and labor turnover will be released at 10 a.m. PepsiCo and Levi Strauss will report their latest results on Tuesday.

Meanwhile,  European stocks traded lower Tuesday with the pan-European Stoxx 600 down 0.7 percent during the morning session.

Oil price falls

Oil prices fell on Tuesday over mounting worries over the outlook for demand.

Brent crude futures shed 21 cents at $63.90 a barrel by 0343 GMT. The U.S. West Texas Intermediate (WTI) crude futures fell 25 cents at $57.41 a barrel.

Oil prices have been under pressure despite OPEC’s production cuts to hold prices.

The lingering worries about demand are a spillover of lingering U.S.-China trade war that entered the second year in June. Both the U.S and China are the world’s top two oil consumers.

“The weaker global economic outlook is keeping oil prices under downward pressure, but tensions in the Middle East are enhancing awareness to possible supply risk and should keep a floor under oil in the medium term,” noted Stephen Innes, managing partner at Vanguard Markets in Bangkok.

Goldman Sachs has forecast that growth in the U.S. shale production will outpace global demand through 2020, and will put a brake on oil price growth despite OPEC’s production cuts.

Asia Pacific stocks down

Asia Pacific stocks fell to their lowest in two-and-a-half weeks on Tuesday. This followed dimmed hopes over a Fed rate cut in the U.S. In mainland China, shares fell with benchmark Shanghai Composite down 0.18 percent.

Hong Kong’s Hang Seng index fell 0.68 percent in its final hour of trade.

Japan’s Nikkei 225 rose 0.14 percent while the Kospi in South Korea tumbled 0.59 percent. Australia’s ASX 200 fell 0.1 percent.

Gold price tumbles

Gold prices fell on Tuesday as the dollar zoomed high on falling expectations of any U.S. rate cut. But softer share markets capped the yellow metal’s slide.

Spot gold fell 0.2 percent at $1,393.03 per ounce as of 0740 GMT.  The U.S. gold futures slipped 0.3 percent to $1,395.70 per ounce.

“Weakness in gold prices is largely due to the easing of rate cut expectations and bond yields are recovering. Markets continue to price in a 25 basis point cut but it looks like sentiment is easing and the dollar rebounded,” commented Benjamin Lu, an analyst at Phillip Futures.