Stansberry Research

Tuesday Morning Market Preview, Calendars

C. Scott GarlissStansberry NewsWire

Morning Market Preview:

S&P futures are higher, up 17 to 18 points, as…

  • U.S. Secretary of State Antony Blinken and Chinese Foreign Minister Qin Gang held a call to discuss improving the relationship between the two nations and maintaining open communication.
  • The U.S. Bureau of Labor Statistics is scheduled to release its Job Openings and Labor Turnover Survey (“JOLTS”) for November, a key measure of labor market tightness.
  • The Federal Reserve is scheduled to release the minutes of its most recent monetary policy meeting on Wednesday with investors awaiting more color on the interest rate outlook.
  • The U.S. Bureau of Labor Statistics’ release of December nonfarm payroll data on Friday will be closely watched as a real-time update on domestic economic health.

European markets gained as…

  • International Monetary Fund Managing Director Kristalina Georgieva said the group anticipates one-third of the global economy will experience a recession in 2023.
  • European Central Bank President Christine Lagarde said it must raise interest rates further to ensure inflation growth doesn’t become entrenched.
  • European Central Bank Governing Council member Joachim Nagel said it needs to tighten monetary policy more aggressively as long-term inflation expectations are rising.
  • Eurozone Consumer Price Index (“CPI”) data for November, due out on Friday, is expected to show inflation growth cooled for the second straight month.

Asian markets rose as…

  • Chinese President Xi Jinping said the nation’s economy is facing difficult challenges to due to COVID-19 but has “tremendous potential” and will rebound through perseverance.
  • The Bank of Japan was said to consider raising its inflation outlook from 1.6% to 2% in 2023 and 2024, implying it could raise the yield cap on 10-year sovereign bonds higher.
  • Bank of Korea Governor Rhee Chang-yong said it will remain focused on bringing down inflation growth through rate hikes and additional support for the won.
  • The People’s Bank of China said it will increase economic support through stable prices, credit growth, and targeted stimulus.

And ahead of…

  • Germany CPI for December (8 a.m.)
  • Markit PMI Manufacturing (Final) for December (9:45 a.m.)
  • Construction Spending for November (10 a.m.)

Pre-Market Levels:

S&P +0.43%

Asia:

Japan's Nikkei closed, Japan's TOPIX closed, China's Shanghai Composite +0.88%, Hong Kong Hang Seng Index +1.84%, South Korea's KOSPI -0.31%, Taiwan's TSE +0.61%

Europe:

EuroStoxx 50 +0.57%, UK FTSE +1.28%, German DAX +0.54%, French CAC +0.41%, Italian MIB +0.80%, Spanish IBEX +0.25%       

Currencies:

Dollar +0.79%, Japanese Yen +0.15%, Euro -1.20%, British Pound -0.72%, Swiss Franc +1.37%, Chinese Yuan +0.18%

Risk:

VIX +6.78%

Bitcoin -0.02%

Ethereum -0.14%

Growth:

WTI Crude -0.86%

Brent Crude -0.95%

Nat Gas -9.16%

Copper +0.28%

Safety:

Gold +0.79%

Silver +1.85%

Sovereign Bonds:

U.S. Treasury 10-yr yield -6.0 bps at 3.77%

U.S. Treasury 2-yr yield -3.7 bps at 4.37%

German 10-yr yield -4.3 bps at 2.41%

French 10-yr yield -5.4 bps at 2.94%

Italian 10-yr yield -2.0 bps at 4.54%

Japanese 10-yr yield -4.0 bps at 0.41%

Earnings:

GHG before the open.

Calendar:

China – Caixin Manufacturing PMI for December
Germany – Unemployment Rate for December (4 a.m.)
U.K. CIPS PMI Manufacturing (Final) for December (4:30 a.m.)
Germany CPI for December (8 a.m.)
Markit PMI Manufacturing (Final) for December (9:45 a.m.)
Construction Spending for November (10 a.m.)