Morning Market Preview:
S&P futures are higher, up 10 to 11 points, as…
- The National Association of Realtors releases its November home sales data later this morning, a key read on the fallout of Federal Reserve interest rate hikes on the housing market.
- The Federal Reserve Bank of Dallas manufacturing survey for December showed the prices received for goods and paid for raw materials are easing, pointing to slowing inflation growth.
- Sovereign-bond yields eased following yesterday’s rally on concerns that China’s removal of COVID restrictions could boost demand for global commodities, underpinning inflation.
European markets rose as…
- German Finance Minister Christian Lindner is said to be exploring a new package of economic reforms including lower individual and corporate taxes, to boost economic growth.
- Russian President Vladimir Putin said the country would ban the export of energy supplies to countries that support an oil-price cap starting February 1, 2023.
- European Central Bank Vice President Luis de Guindos said it will continue to raise interest rates until inflation growth is back to the 2% target, despite the potential for a recession.
- Ukraine’s Foreign Minister Dmytro Kuleba said the country is seeking a peace summit by February but would only involve Russia if it faces a “war crimes” tribunal first.
Asian markets were mixed as…
- The Bank of Japan announced an unscheduled purchase operation, offering to buy $3 billion worth of three-, five-, and 10-year bonds in an attempt to keep yields low.
- Chinese state-run media outlet Economic Daily said the government in Beijing has room to introduce more “powerful measures” to support the real estate industry and economic growth.
- Bank of Japan minutes from the most recent policy meeting showed policymakers were seeing signs of broad-based price increases, supporting the potential removal of easy-money policies.
- South Korean manufacturing sentiment for January declined compared to December, falling for the fourth straight month, as demand continued to ease.
And ahead of…
- Pending Home Sales for November (10 a.m.)
- Richmond Fed Manufacturing Index for December (10 a.m.)
- American Petroleum Institute Crude Oil Inventory Data (4:30 p.m.)
Japan's Nikkei -0.41%, Japan's TOPIX -0.06%, China's Shanghai Composite -0.26%, Hong Kong Hang Seng Index +1.56%, South Korea's KOSPI -2.24%, Taiwan's TSE -1.08%
EuroStoxx 50 +0.18%, UK FTSE +0.92%, German DAX +0.11%, French CAC +0.27%, Italian MIB +0.19%, Spanish IBEX +0.55%
Dollar -0.07%, Japanese Yen +0.04%, Euro +0.08%, British Pound +0.54%, Swiss Franc -0.25%, Chinese Yuan +0.22%
WTI Crude -0.18%
Brent Crude -0.25%
Nat Gas -5.62%
U.S. Treasury 10-yr yield -2.8bps at 3.81%
U.S. Treasury 2-yr yield -4.4bps at 4.33%
German 10-yr yield -5.4bps at 2.46%
French 10-yr yield -4.1bps at 3.01%
Italian 10-yr yield -4.4bps at 4.58%
Japanese 10-yr yield -0.9bps at 0.46%
CALM after the close.
Japan – Industrial Production for November
MBA 30-Year Rate and Mortgage Applications (7 a.m.)
Pending Home Sales for November (10 a.m.)
Richmond Fed Manufacturing Index for December (10 a.m.)
American Petroleum Institute Crude Oil Inventory Data (4:30 p.m.)