Stansberry Research

Wednesday Morning Market Preview, Calendars

C. Scott GarlissStansberry NewsWire

Morning Market Preview:

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

  • Federal Reserve Governor Michelle Bowman said the central bank needs to raise interest rates further and hold them at a restrictive level for some time.
  • The U.S. Treasury increased the size of upcoming bill auctions, meaning a debt-ceiling fight in Congress could be approaching sooner rather than later.
  • DoubleLine Capital Chief Investment Officer Jeffrey Gundlach said the Federal Reserve is unlikely to raise interest rates above 5% despite its ‘hawkish’ rhetoric.
  • The Federal Reserve Bank of Atlanta’s GDPNow forecast for the fourth quarter rose from 3.8% to 4.1% on upward revisions to private investment and personal consumption growth.

European markets gained as…

  • Italian retail sales figures for November rose by 0.8% from a month earlier in November of 2022, rebounding from October's contraction as consumer spending on non-food items jumped during the holiday season. 
  • European Central Bank Governing Council member Mario Centeno said the central bank must continue to raise interest rates until it has inflation growth back under control.
  • The Bank of England warned lenders to prepare for increased scrutiny of their lending and risk management practices due to heightening credit stress.
  • European Central Bank Executive Board member Isabel Schnabel said interest rates need to rise further for monetary policy to reach a level that restricts growth.

Asian markets ended higher as…

  • Australian Consumer Price Index (“CPI”) growth for November was stronger than anticipated, rising compared to October, on strength in housing and wages.
  • Chinese state-run media outlet China Securities Journal said there is plenty of room for the central bank to lower lenders' reserve requirement ratios and boost borrowing and spending.
  • South Korea’s unemployment rate for December jumped more than anticipated, hitting the highest level since January, as interest rate hikes weighed on economic activity.
  • The People’s Bank of China's new yuan loan growth figures for December were stronger than expected as the government is encouraging banks to jumpstart economic growth.

And ahead of…

  • Energy Information Administration Weekly Petroleum Inventories (10:30 a.m.)

Pre-Market Levels:

S&P +0.05%

Asia:

Japan's Nikkei +1.03%, Japan's TOPIX +1.09%, China's Shanghai Composite -0.24%, Hong Kong Hang Seng Index +0.49%, South Korea's KOSPI +0.35%, Taiwan's TSE -0.35%

Europe:

EuroStoxx 50 +1.06%, UK FTSE +0.64%, German DAX +1.04%, French CAC +0.97%, Italian MIB +0.55%, Spanish IBEX +0.22%     

Currencies:

Dollar +0.16%, Japanese Yen +0.29%, Euro +0.03%, British Pound -0.27%, Swiss Franc +0.40%, Chinese Yuan -0.06%

Risk:

VIX +0.97%

Bitcoin -0.25%

Ethereum -0.57%

Growth:

WTI Crude +0.29%

Brent Crude +0.49%

Nat Gas +2.56%

Copper +0.54%

Safety:

Gold +0.32%

Silver +1.04%

Sovereign Bonds:

U.S. Treasury 10-yr yield -4.1 bps at 3.58%

U.S. Treasury 2-yr yield -2.5 bps at 4.23%

German 10-yr yield -8.4 bps at 2.22%

French 10-yr yield -8.9 bps at 2.71%

Italian 10-yr yield -13.4 bps at 4.08%

Japanese 10-yr yield -0.2 bps at 0.51%

Earnings:

KBH and BBCP after the close.

Calendar:

Australia – Retail Sales for November
Australia – CPI for November
Japan – FX Reserves for December
Japan – Leading Economic Index for November
MBA 30-Year Rate and Mortgage Applications (7 a.m.)
Energy Information Administration Weekly Petroleum Inventories (10:30 a.m.)