Morning Market Preview:
S&P futures are higher, up 10 to 11 points, as…
- Republicans failed to elect a new Speaker of the House, following three rounds of votes, highlighting the potential gridlock the White House’s agenda is facing over the next two years.
- Investors await the U.S. Bureau of Labor Statistics’ November Job Openings and Labor Turnover Survey (“JOLTS”) data later this morning for an update on labor-market tightness.
- Federal Reserve overnight reverse repurchase facility usage dropped by a record $365 billion yesterday with the easing of a year-end cash crunch.
- The lending benchmark 10-Year U.S. Treasury yield remained below 4% and the late-October 4.25% peak as investors snapped up bonds in anticipation of peak interest rates.
European markets gained as…
- French preliminary Consumer Price Index (“CPI”) growth for December was weaker than expected as fuel and services costs eased.
- U.K. consumer credit growth for November surged to its largest increase in five months as the nation struggles to deal with persistently high food inflation.
- European natural gas prices hovered around levels last seen prior to Russia’s invasion of Ukraine as Europe increased liquified natural gas imports from the U.S. and Qatar.
- European Central Bank Governing Council member Martins Kazaks said he expects interest rates to be raised significantly at the next two meetings, implying at least another 1%.
Asian markets rose as…
- The People’s Bank of China was said to consider measures that would boost the property market and economy by supporting ‘too-big-to-fail’ developers.
- The White House said U.S. President Joe Biden will meet with Japanese Prime Minister Fumio Kishida in Washington, D.C., on January 13 to affirm America’s commitment to regional stability.
- Bank of Japan Governor Haruhiko Kuroda said it expects global inflation to peak as economic growth slows.
- Bank of Korea Governor Rhee Chang-yong said the central bank would better coordinate policies with the government to try and stave off inflation-driven economic pain.
And ahead of…
- ISM Manufacturing Index for December (10 a.m.)
- JOLTS Job Openings for November (10 a.m.)
- FOMC December Meeting Minutes (2 p.m.)
- American Petroleum Institute Crude Oil Inventory Data (4:30 p.m.)
Japan's Nikkei -1.45%, Japan's TOPIX -1.20%, China's Shanghai Composite +0.22%, Hong Kong Hang Seng Index +3.22%, South Korea's KOSPI +1.68%, Taiwan's TSE -0.18%
EuroStoxx 50 +1.90%, UK FTSE +0.71%, German DAX +1.66%, French CAC +1.76%, Italian MIB +1.30%, Spanish IBEX +1.52%
Dollar -0.57%, Japanese Yen -0.08%, Euro %, British Pound +0.70%, Swiss Franc -0.88%, Chinese Yuan -0.46%
WTI Crude -3.24%
Brent Crude -3.28%
Nat Gas +0.58%
U.S. Treasury 10-yr yield -10.4 bps at 3.69%
U.S. Treasury 2-yr yield -6.2 bps at 4.34%
German 10-yr yield -8.6 bps at 2.29%
French 10-yr yield -9.3 bps at 2.81%
Italian 10-yr yield -12.6 bps at 4.35%
Japanese 10-yr yield +7.1 bps at 0.48%
UNF before the open.
RGP, SLP, LFCR, and RELL after the close.
Japan – Markit/JMMA PMI Manufacturing (Final) for December (9:45 a.m.)
China – Markit/Caixin Services PMI for December
Germany – Import Price Index for November (2 a.m.)
France – Consumer Confidence Survey for December (2:45 a.m.)
France – CPI for December (2:45 a.m.)
France – Markit PMI Services (Final) for December (3:50 a.m.)
Germany – Markit PMI Composite & Services (Final) for December (3:55 a.m.)
Eurozone – Markit PMI Composite (Final) for December (4 a.m.)
U.K. – Bank of England Mortgage Figures and Consumer Credit for November (4:30 a.m.)
U.K. – M4 Money Supply for November (4:30 a.m.)
MBA 30-Year Rate and Mortgage Applications (7 a.m.)
ISM Manufacturing Index for December (10 a.m.)
JOLTS Job Openings for November (10 a.m.)
FOMC December Meeting Minutes (2 p.m.)
American Petroleum Institute Crude Oil Inventory Data (4:30 p.m.)