Stansberry Research

Friday Morning Market Preview, Calendars

C. Scott GarlissStansberry NewsWire

Morning Market Preview:

S&P futures are higher, up 10 to 11 points, as…

  • Senate Minority Leader Mitch McConnell (R-KY) said the debt ceiling fight will be contentious but America has never before and never will default on its debt.
  • Federal Reserve Vice Chair Lael Brainard said its interest rate hikes will slow the economy further this year but they must remain restrictive to cool inflation growth even more.
  • Federal Reserve Bank of Boston President Susan Collins said a “slower pace” of interest rate hikes makes sense given they are getting closer to peak levels.
  • U.S. Treasury Secretary Janet Yellen informed Congress and the White House that her office had begun using extraordinary measures to stave off a potential debt default until early June.

European markets rose as…

  • German Producer Price Index (“PPI”) growth for December fell to 21.6% YOY, less than half the record high hit last summer and the lowest level in more than a year as cost pressures continue to recede. 
  • British retail sales figures for December showed the lowest sales volume since 1997 as consumer spending was not bolstered by the Christmas holiday. 
  • Swiss National Bank President Thomas Jordan said it will likely have to raise interest rates even more to combat inflation growth.
  • European Central Bank minutes of the most recent monetary policy meeting showed members accepted a 50 basis point rate hike only after a pledge for more aggressive increases moving forward.

Asian markets gained as…

  • China’s lending benchmark 1- and 5-year loan prime rates were left unchanged as the government is waiting for COVID infections to subside before introducing stimulus.
  • Japan’s core Consumer Price Index (“CPI”) growth of 4% for December was well above the 2% inflation target, increasing pressure on the Bank of Japan to raise interest rates.
  • South Korea’s Producer Price Index (“PPI”) growth for December eased to 6%, hitting the lowest level since April 2021, and taking pressure off the Bank of Korea to keep raising rates.
  • The People’s Bank of China added another $48 billion worth of liquidity to the financial system vis reverse repurchase operations, bringing the total this week to $301.5 billion.

And ahead of…

  • Fed's Collins Speaks (9 a.m.)
  • Existing Home Sales for December (10 a.m.)
  • ECB's Elderson Speaks (10:30 a.m.)
  • Fed's Waller Speaks (1 p.m.)
  • Baker Hughes Rig Count Data (1 p.m.)
  • CFTC Commitment of Traders Report (3:30 p.m.)
  • Fed's Williams Speaks (6:35 p.m.)

Pre-Market Levels:

S&P +0.27%

Asia:

Japan's Nikkei +0.56%, Japan's TOPIX +0.58%, China's Shanghai Composite +0.76%, Hong Kong Hang Seng Index +1.82%, South Korea's KOSPI +0.63%, Taiwan's TSE +0.04%

Europe:

EuroStoxx 50 +0.51%, UK FTSE +0.16%, German DAX +0.51%, French CAC +0.62%, Italian MIB +0.66%, Spanish IBEX +1.13      

Currencies:

Dollar +0.32%, Japanese Yen +1.43%, Euro -0.13%, British Pound -0.33%, Swiss Franc +0.50%, Chinese Yuan +0.08%

Risk:

VIX -0.44%

Bitcoin -0.11%

Ethereum -0.03%

Growth:

WTI Crude +0.20%

Brent Crude +0.30%

Nat Gas -1.10%

Copper -0.39%

Safety:

Gold +0.27%

Silver +0.82%

Sovereign Bonds:

U.S. Treasury 10-yr yield +3.2 bps at 3.43%

U.S. Treasury 2-yr yield +4.6 bps at 4.16%

German 10-yr yield +8.5 bps at 2.14%

French 10-yr yield +8.8 bps at 2.57%

Italian 10-yr yield +12.7 bps at 3.90%

Japanese 10-yr yield -0.1 bps at 0.43%

Earnings:

BIOQ, CCBC, CMHF, FBSI, FGFH, OVLY, UBNC, VABK, WAYN, HBAN, RF, SLB, ALLY, STT, and SMIT before the open.

Calendar:

China – One- and Five-Year Loan Prime Rate
South Korea – PPI for December
Japan – CPI for December
Germany – PPI for December (2 a.m.)
U.K. – Retail Sales for December (2 a.m.)
ECB's Lagarde Speaks (5 a.m.)
Fed's Collins Speaks (9 a.m.)
Existing Home Sales for December (10 a.m.)
ECB's Elderson Speaks (10:30 a.m.)
Fed's Waller Speaks (1 p.m.)
Baker Hughes Rig Count Data (1 p.m.)
CFTC Commitment of Traders Report (3:30 p.m.)
Fed's Williams Speaks (6:35 p.m.)