Morning Market Preview:
S&P futures are higher, up 5 to 6 points, as…
- Federal Reserve meeting minutes showed a “substantial number” of policymakers feel the central bank should begin to slow the pace of interest rate hikes in December.
- The Federal Reserve Bank of Atlanta’s GDPNow forecast for the fourth quarter rose from 4.2% to 4.3% on an upward revision to private domestic investment growth.
- The Institute of International Finance said it expects global economic growth to hit 1.2% next year, the weakest level since 2009.
- Group of Seven negotiations on the implementation of a price cap for Russian oil ran into a roadblock as European Union countries disagreed over the proposal for a $70 per barrel limit.
European markets rose as…
- Germany’s final third-quarter economic growth was stronger than the initial reading on rising private consumption and increasing business investment.
- European Central Bank minutes from the most recent monetary policy meeting showed most Governing Council members favored a more aggressive path of interest rate hikes.
- Bank of England Deputy Governor Dave Ramsden said it must continue to raise interest rates and suppress inflation growth despite the economic recession potential.
- European Central Bank Executive Board member Isabel Schnable said incoming economic data indicate it’s too soon to slow the pace of interest rate hikes.
Asian markets declined as…
- China’s State Council said it would use monetary-policy tools such as the reserve requirement ratio for banks to ensure ample liquidity in the financial system and support economic growth.
- The Bank of Korea raised interest rates by 25 basis points to 3.25% but Governor Rhee Chang-yong said it needs to see signs inflation growth has slowed before it ceases policy tightening.
- Japanese department-store sales growth for October slipped compared to September, signaling a weak yen and rising energy costs are weighing on economic activity.
- People’s Bank of China adviser Wang Yiming said China’s economy is likely to grow by more than 5% next year if COVID lockdowns end and the government introduces stimulus.
And ahead of…
- ECB’s de Guindos Speaks (12 p.m.)
- U.S. Markets Close Early (1 p.m.)
- CFTC Commitment of Traders Report (3:30 p.m.)
Japan's Nikkei -0.35%, Japan's TOPIX -0.04%, China's Shanghai Composite +0.40%, Hong Kong Hang Seng Index -0.49%, South Korea's KOSPI -0.14%, Taiwan's TSE -0.04%
EuroStoxx 50 +0.07%, UK FTSE +0.28%, German DAX -0.01%, French CAC +0.10%, Italian MIB +0.08%, Spanish IBEX +0.11%
Dollar +0.04%, Japanese Yen +0.50%, Euro -0.21%, British Pound -0.11%, Swiss Franc +0.29%, Chinese Yuan +0.28%
WTI Crude +2.14%
Brent Crude +1.51%
Nat Gas -2.03%
U.S. Treasury 10-yr yield +1.8bps at 3.71%
U.S. Treasury 2-yr yield +1.0bps at 4.49%
German 10-yr yield +9.1bps at 1.94%
French 10-yr yield +10.0bps at 2.39%
Italian 10-yr yield +14.0bps at 3.80%
Japanese 10-yr yield +0.6bps at 0.25%
Japan – Services PPI for October
Germany – GfK Consumer Confidence for November (2 a.m.)
Germany – Private Consumption, Government Spending for 3Q (2 a.m.)
Germany – Final GDP for 3Q (2 a.m.)
France – Consumer Confidence for November (2:45 a.m.)
ECB’s af Jochnick Speaks (3:50 a.m.)
ECB’s de Guindos Speaks (12 p.m.)
U.S. Markets Close Early (1 p.m.)
CFTC Commitment of Traders Report (3:30 p.m.)