Stansberry Research

Friday Morning Market Preview, Calendars

C. Scott GarlissStansberry NewsWire

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.)

Pre-Market Levels:

S&P +0.12%

Asia:

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%

Europe:

EuroStoxx 50 +0.07%, UK FTSE +0.28%, German DAX -0.01%, French CAC +0.10%, Italian MIB +0.08%, Spanish IBEX +0.11%

Currencies:

Dollar +0.04%, Japanese Yen +0.50%, Euro -0.21%, British Pound -0.11%, Swiss Franc +0.29%, Chinese Yuan +0.28%

Risk:

VIX +1.08%

Bitcoin -0.21%

Ethereum -0.34%

Growth:

WTI Crude +2.14%

Brent Crude +1.51%

Nat Gas -2.03%

Copper +1.48%

Safety:

Gold -0.24%

Silver -1.16%

Sovereign Bonds:

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%

Earnings:

No earnings.

Calendar:

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.)