Morning Market Preview:
S&P futures are higher, up 15 to 16 points, as…
- Federal Reserve Governor Lisa Cook said inflation growth remains far too high but recent labor- and rental-market data (important drivers) are showing signs of easing price pressures.
- Federal Reserve Chairman Jerome Powell is scheduled to speak tomorrow about central bank independence, with investors awaiting any clues on future interest rate intentions.
- The U.S. Bureau of Labor Statistics is scheduled to release its Consumer Price Index (“CPI”) growth figures for December on Friday, a key reading on domestic inflation.
- Fourth-quarter earnings season formally gets underway when JPMorgan Chase (JPM), Citigroup (C), and Wells Fargo release results on Friday.
European markets gained as…
- Sentix’s Eurozone investor confidence showed continued improvement of investor morale, picking up for a third consecutive month in January to its highest level since June 2022.
- German Industrial production figures for November were slightly higher compared to the prior month, rising 0.2%, bolstering hopes that a recession for Europe's largest economy may only be a shallow one.
- European Central Bank Chief Economist Philip Lane said long-term inflation expectations are becoming anchored, meaning interest rates must remain higher to ease price pressures.
- European Central Bank Governing Council member Mario Centeno said interest rates must rise further to bring inflation growth back to the 2% target.
Asian markets rose as…
- People’s Bank of China member Guo Shuqing said it will conduct debt swaps with local governments in an attempt to ease debt burdens and boost economic output.
- Japanese Prime Minister Fumio Kishida said the future Bank of Japan chief should have a more transparent monetary policy via increased public communication.
- Taiwan’s government passed a law that would increase tax credits for local semiconductor manufacturers in an attempt to keep more technology jobs and revenue.
- The Bank of Korea announces its latest monetary policy update on Friday when it's expected to raise interest rates by another 25 basis points yet signal its prepared to pause further increases.
And ahead of…
- BOE’s Pill Speaks (10:30 a.m.)
- Fed’s Bostic Speaks (12:30 p.m.)
- Consumer Credit for November (3 p.m.)
Japan's Nikkei closed, Japan's TOPIX closed, China's Shanghai Composite +0.58%, Hong Kong Hang Seng Index +1.89%, South Korea's KOSPI +2.63%, Taiwan's TSE +2.64%
EuroStoxx 50 +0.55%, UK FTSE -0.09%, German DAX +0.46%, French CAC +0.23%, Italian MIB +0.54%, Spanish IBEX -0.30%
Dollar -0.32%, Japanese Yen +0.19%, Euro +0.39%, British Pound +0.39%, Swiss Franc -0.47%, Chinese Yuan -0.82%
WTI Crude +3.47%
Brent Crude +3.19%
Nat Gas +4.96%
U.S. Treasury 10-yr yield +2.6 bps at 3.60%
U.S. Treasury 2-yr yield +1.0 bps at 4.27%
German 10-yr yield +5.2 bps at 2.26%
French 10-yr yield +5.9 bps at 2.77%
Italian 10-yr yield +6.2 bps at 4.28%
Japanese 10-yr yield +8.5 bps at 0.50%
PCYO, AYI, and CMC before the open.
ACCD, APLD, AZZ, CNXC, ETWO, JEF, VOCC, WDFC, PSMT, DIGP, and LMNR after the close
China – Loan Growth for December
China – M2 Money Supply Data for December
Taiwan – Exports, Imports for December
Germany – Industrial Production for November (2 a.m.)
France – Trade Balance for November (2:45 a.m.)
Eurozone – Sentix Economic Index for January (4:30 a.m.)
Eurozone – Unemployment Rate for November (5 a.m.)
BOE’s Pill Speaks (10:30 a.m.)
Fed’s Bostic Speaks (12:30 p.m.)
Consumer Credit for November (3 p.m.)