Stansberry Research

Friday Morning Market Preview, Calendars

C. Scott GarlissStansberry NewsWire

Morning Market Preview:

S&P futures are mixed, up 1 to 2 points, as…

  • Investors await the U.S. Bureau of Labor Statistics’ release of December nonfarm payroll data as a real-time update on domestic labor markets and economic health.
  • Federal Reserve Bank of St. Louis President James Bullard said the central bank’s projections for peak interest rates of 5.1% should be restrictive enough to rein in inflation.
  • Federal Reserve Bank of Kansas City President Esther George said interest rates will need to remain above 5% for some time until inflation growth is moving sustainably toward the 2% target.
  • Federal Reserve Bank of Atlanta President Raphael Bostic said domestic inflation growth remains way too high and the central bank remains committed to bringing it back down.

European markets are mostly higher as…

  • Eurozone preliminary Consumer Price Index (“CPI”) growth for December eased to 9.2% Y/Y as inflation returned to single digits for the first time since last August, as energy prices continued to fall. 
  • German retail sales figures for November rose 1.1% M/M, but still recorded a larger-than-expected decline on an annual basis as consumer inflation continued to bite into spending habits. 
  • European Central Bank Governing Council member Francois Villeroy de Galhau said slower inflation growth is encouraging but it should reach peak interest rates by the middle of summer.
  • The Bank of England said its December business survey showed inflation expectations for 2023 rose from 7.2% to 7.4%, creating increased caution with regard to investment and hiring.

Asian markets rose as…

  • China’s government was said to consider easing borrowing limits for property developers in an attempt to support the real estate market.
  • Japanese Minister of Economy and Trade Yasutoshi Nishimura said he wants the Group of Seven nations to use a coordinated approach against economic coercion by China.
  • The People’s Bank of China and the China Banking and Insurance Regulatory Commission said they would allow interest rate reductions for first-time home buyers to support the economy.
  • Japanese consumer confidence rebounded in December compared to November as households were increasingly optimistic about their employment and earnings prospects.

And ahead of…

  • Payroll Data for December (8:30 a.m.)
  • Unemployment Rate for December (8:30 a.m.)
  • Durable Goods Orders (Final) for November (10 a.m.)
  • Factory Orders for November (10 a.m.)
  • ISM Services PMI for December (10 a.m.)
  • Fed’s Barkin Speaks (12:15 p.m.)
  • Baker Hughes Rig Count Data (1 p.m.)
  • CFTC Commitment of Traders Report (3:30 p.m.)

Pre-Market Levels:

S&P +0.03%

Asia:

Japan's Nikkei +0.59%, Japan's TOPIX +0.38%, China's Shanghai Composite +0.08%, Hong Kong Hang Seng Index -0.29%, South Korea's KOSPI +1.12%, Taiwan's TSE +0.51%

Europe:

EuroStoxx 50 +0.13%, UK FTSE +0.30%, German DAX -0.06%, French CAC +0.31%, Italian MIB +0.53%, Spanish IBEX +0.33%       

Currencies:

Dollar +0.35%, Japanese Yen +0.87%, Euro -0.29%, British Pound -0.42%, Swiss Franc +0.43%, Chinese Yuan -0.30%

Risk:

VIX +1.56%

Bitcoin -0.75%

Ethereum -0.86%

Growth:

WTI Crude -0.35%

Brent Crude -0.28%

Nat Gas -3.47%

Copper -0.34%

Safety:

Gold +0.05%

Silver +0.73%

Sovereign Bonds:

U.S. Treasury 10-yr yield +0.3 bps at 3.73%

U.S. Treasury 2-yr yield +2.6 bps at 4.48%

German 10-yr yield -1.8 bps at 2.29%

French 10-yr yield -1.6 bps at 2.80%

Italian 10-yr yield -1.2 bps at 4.32%

Japanese 10-yr yield +9.0 bps at 0.50%

Earnings:

GBX and HURC before the open.

Calendar:

Japan PMI Services for December
Germany – Manufacturing Orders for November (2 a.m.)
Germany – Retail Sales for November (2 a.m.)
U.K. Halifax House Price Survey for December (2 a.m.)
France – Consumer Spending for November (2:45 a.m.)
U.K. – CIPS Construction PMI for December (4:30 a.m.)
Eurozone Business Climate and Consumer Confidence Index for December (5 a.m.)
Eurozone Consumer Price Index for December (5 a.m.)
Eurozone Industrial & Services Confidence Indicator for December (5 a.m.)
Payroll Data for December (8:30 a.m.)
Unemployment Rate for December (8:30 a.m.)
Durable Goods Orders (Final) for November (10 a.m.)
Factory Orders for November (10 a.m.)
ISM Services PMI for December (10 a.m.)
Fed’s Barkin Speaks (12:15 p.m.)
Baker Hughes Rig Count Data (1 p.m.)
CFTC Commitment of Traders Report (3:30 p.m.)