Morning Market Preview:
S&P futures are higher, up 5 to 6 points, as…
- Federal Reserve minutes from the most recent monetary-policy meeting showed officials believe further rate increases are still needed but economic-growth risks are tilted lower.
- Investors await December employment figures from payroll and benefits administrator Automatic Data Processing (ADP) for clues on the strength of the domestic labor market.
- The Federal Reserve Bank of New York warned there will likely be a surge in credit-card and auto-loan delinquencies if the government’s student debt relief plan fails.
- Cloud-based services and online-retail giant Amazon (AMZN) said it will reduce headcount by more than originally anticipated as the company downsizes due to slowing customer demand.
European markets are mixed as…
- Eurozone Producer Price Index (“PPI”) growth for November registered its third straight month of Y/Y declines, recording the lowest annual growth rate since December 2021 as pricing pressures continued to ease.
- European Energy Exchange data showed Germany produced a record amount of power from wind, as the region experiences above-average temperatures, easing natural-gas demand.
- British Prime Minister Rishi Sunak pledged to reduce the nation’s debt load, ease inflation, and spur economic growth in an attempt to garner more public support for the Tory party.
- European Central Bank researchers suggested higher prices should boost nominal economic output and governments’ ability to service previously issued sovereign debt.
Asian markets rose as…
- The People’s Bank of China said it will use multiple monetary policy tools and ensure there’s an ample amount of liquidity in the financial system to support economic growth.
- Samsung Electronics Consumer Products CEO Hong Jong-hee said he doesn’t expect demand for technology goods to rebound until the second half of 2023.
- Taiwan’s government said it will hold trade talks with the U.S. in Taipei in mid-January, potentially stoking political tensions with China.
- Japanese Prime Minister Fumio Kishida said he would encourage businesses to increase employee pay, signaling inflation may force the Bank of Japan to tighten monetary policy.
And ahead of…
- ADP Employment Survey for December (8:15 a.m.)
- Continuing, Initial Jobless Claims (8:30 a.m.)
- Imports, Exports for November (8:30 a.m.)
- PMI Composite (Final) for December (9:45 a.m.)
- Markit PMI Services (Final) for December (9:45 a.m.)
- Energy Information Administration Weekly Petroleum Inventories (11 a.m.)
Pre-Market Levels:
S&P +0.14%
Asia:
Japan's Nikkei +0.40%, Japan's TOPIX +0.08%, China's Shanghai Composite +1.01%, Hong Kong Hang Seng Index +1.25%, South Korea's KOSPI +0.38%, Taiwan's TSE +0.72%
Europe:
EuroStoxx 50 -0.13%, UK FTSE +0.45%, German DAX -0.10%, French CAC +0.05%, Italian MIB +0.09%, Spanish IBEX +0.42%
Currencies:
Dollar -0.03%, Japanese Yen -0.10%, Euro +0.04%, British Pound -0.22%, Swiss Franc -0.27%, Chinese Yuan -0.24%
Risk:
VIX +0.14%
Bitcoin +0.02%
Ethereum +0.09%
Growth:
WTI Crude +2.05%
Brent Crude +2.11%
Nat Gas -3.98%
Copper +2.43%
Safety:
Gold -0.39%
Silver -1.46%
Sovereign Bonds:
U.S. Treasury 10-yr yield -2.1 bps at 3.69%
U.S. Treasury 2-yr yield +0.2 bps at 4.39%
German 10-yr yield +0.2 bps at 2.28%
French 10-yr yield -0.6 bps at 2.79%
Italian 10-yr yield -1.0 bps at 4.28%
Japanese 10-yr yield -3.5 bps at 0.43%
Earnings:
BKE, MSM, ANGO, RPM, SCHN, SMPL, STZ, WBA, CAG, and LW before the open.
DCT, EDUC, FC, KRUS, AEHR, BBBY, CCF, and PKE after the close.
Calendar:
Germany – Imports, Exports for November (2 a.m.)
Germany – PMI Construction for December (3:30 a.m.)
U.K. – CIPS Services PMI (Final) for December (4:30 a.m.)
Eurozone – PPI for November (5 a.m.)
Challenger Layoffs for December (7:30 a.m.)
ADP Employment Survey for December (8:15 a.m.)
Continuing, Initial Jobless Claims (8:30 a.m.)
Imports, Exports for November (8:30 a.m.)
PMI Composite (Final) for December (9:45 a.m.)
Markit PMI Services (Final) for December (9:45 a.m.)
Energy Information Administration Weekly Petroleum Inventories (11 a.m.)