Stansberry Research

Tuesday Morning Market Preview, Calendars

C. Scott GarlissStansberry NewsWire

Morning Market Preview:

S&P futures are lower, down 17 to 18 points, as…

  • Investors await a speech later this morning by Federal Reserve Chairman Jerome Powell about central bank independence for clues on future interest rate intentions.
  • Federal Reserve Bank of San Francisco President Mary Daly said she expects the central bank to pause interest rate hikes once the federal funds target range is above 5%.
  • Federal Reserve Bank of Atlanta President Raphael Bostic said he expects interest rates to be above 5% by early in the second quarter and remain there for a “long time.’
  • The Federal Reserve Bank of New York’s inflation expectations survey showed that the short-term outlook is declining while the medium-term picture remains unchanged.

European markets weakened as…

  • French industrial production figures for November increased as activity returned to normal following strikes in October that caused a fall in production, however headwinds remain from high energy prices and weakening global demand. 
  • European Union and U.K. trade negotiators made headway on improving their economic relationship after agreeing on how to track goods moving from Great Britain to Northern Ireland.
  • Bank of England Chief Economist Huw Pill said it's beginning to see signs inflation growth is easing, signaling the potential for a shift in interest rate policies.
  • The European Central Bank said it expects regional wage growth to remain very strong over the next few quarters, necessitating additional interest rate hikes.

Asian markets ended mixed as…

  • Tokyo’s Consumer Price Index (“CPI”) growth for December hit the highest level since 1982, increasing pressure on the Bank of Japan to raise interest rates.
  • Chinese Provincial Health Commission Director Kan Quancheng said some of the most populated provinces have passed peak COVID cases as 89% of residents have been infected.
  • Japanese Prime Minister Fumio Kishida and French President Emmanuel Macron pledged to increase security cooperation in Asia, potentially stoking political tensions with China.
  • The People’s Bank of China’s Shanghai branch said it would offer more financial support to the district’s property market in an attempt to bolster economic growth.

And ahead of…

  • Fed’s Powell Speaks (9 a.m.)
  • Wholesale Inventories (Final) for November (10 a.m.)
  • American Petroleum Institute Crude Oil Inventory Data (4:30 p.m.)

Pre-Market Levels:

S&P -0.44%

Asia:

Japan's Nikkei +0.78%, Japan's TOPIX +0.28%, China's Shanghai Composite -0.21%, Hong Kong Hang Seng Index -0.27%, South Korea's KOSPI +0.05%, Taiwan's TSE +0.34%

Europe:

EuroStoxx 50 -0.51%, UK FTSE -0.18%, German DAX -0.50%, French CAC -0.74%, Italian MIB -0.20%, Spanish IBEX -0.02%       

Currencies:

Dollar +0.16%, Japanese Yen +0.23%, Euro -0.05%, British Pound -0.34%, Swiss Franc +0.10%, Chinese Yuan +0.13%

Risk:

VIX +2.09%

Bitcoin +0.06%

Ethereum +0.37%

Growth:

WTI Crude +0.42%

Brent Crude +0.33%

Nat Gas -3.25%

Copper -0.34%

Safety:

Gold -0.04%

Silver -1.03%

Sovereign Bonds:

U.S. Treasury 10-yr yield +5.0 bps at 3.57%

U.S. Treasury 2-yr yield +4.6 bps at 4.25%

German 10-yr yield +7.1 bps at 2.29%

French 10-yr yield +7.7 bps at 2.79%

Italian 10-yr yield +7.8 bps at 4.25%

Japanese 10-yr yield +0.8 bps at 0.51%

Earnings:

BBBY, ACI, and SNX before the open.

NOTV and SAR after the close.

Calendar:

Japan – CPI for December
Japan – Real Household Consumption Expenditure for November
France – Industrial, Manufacturing Production for November
(2:45 a.m.)
ECB’s Schnabel Speaks
(5:10 a.m.)
NFIB Small Business Index for December
(6 a.m.)
Fed’s Powell Speaks
(9 a.m.)
Wholesale Inventories (Final) for November
(10 a.m.)
American Petroleum Institute Crude Oil Inventory Data (4:30 p.m.)