Morning Market Preview:
S&P futures are lower, down 3 to 4 points, as…
- Earnings season kicks into high gear with 93 S&P 500 Index member companies and 12 of 30 Dow Jones Industrial Average components scheduled to release results this week.
- Federal Reserve Governor Christopher Waller said he would support raising interest rates by 25 basis points at the next monetary policy meeting, signaling we’re getting closer to a peak.
- Federal Reserve Bank of Kansas City President Esther George said the central bank’s rate hikes are working and she’s encouraged inflation to see inflation growth easing.
- Federal Reserve Bank of Philadelphia President Patrick Harker said he anticipates the central bank will only raise interest rates a few more times this year.
European markets rose as…
- German Chancellor Olaf Scholz and French President Emmanuel Macron called on European businesses to invest more to keep pace with the U.S. and China.
- European Central Bank Governing Council member Klaas Knot said it should raise interest rates by at least 50 basis points at the next two monetary policy meetings.
- European Central Bank Governing Council member Olli Rehn said there is room for significant interest rate increases at the upcoming monetary policy meetings.
- International Monetary Fund Managing Director Kristalina Georgieva hinted it could upgrade its global growth assessment on an improving inflation outlook.
Asian markets gained as…
- Japanese Prime Minister Fumio Kishida said he will nominate a new governor for the Bank of Japan next month, likely stoking speculation of rising interest rates.
- Bank of Japan minutes from December’s monetary policy meeting showed government representatives temporarily suspended the announcement, implying they were unprepared for the interest rate change.
- S&P Global’s preliminary manufacturing Purchasing Managers’ Index (“PMI”) data for January are expected to show global growth slowed further when they’re released Tuesday.
- Markets in China, Hong Kong, South Korea, and Taiwan are closed for the Lunar New Year holiday.
And ahead of…
- Building Permits for December (8 a.m.)
- ECB's Panetta Speaks (9:30 a.m.)
- Eurozone – Consumer Confidence Indicator for January (10 a.m.)
- The Conference Board's Leading Economic Indicators for December (10 a.m.)
- ECB's Lagarde Speaks (12:45 p.m.)
Pre-Market Levels:
S&P -0.08%
Asia:
Japan's Nikkei +1.33%, Japan's TOPIX +0.96%, China's Shanghai Composite closed, Hong Kong Hang Seng Index closed, South Korea's KOSPI closed, Taiwan's TSE closed
Europe:
EuroStoxx 50 +0.12%, UK FTSE +0.26%, German DAX -0.05%, French CAC -0.04%, Italian MIB -0.59%, Spanish IBEX +0.06%
Currencies:
Dollar -0.03%, Japanese Yen +0.60%, Euro +0.15%, British Pound -0.32%, Swiss Franc +0.15%, Chinese Yuan unchanged
Risk:
VIX +1.91%
Bitcoin +2.49%
Ethereum -0.31%
Growth:
WTI Crude +0.75%
Brent Crude +0.94%
Nat Gas +9.67%
Copper +0.28%
Safety:
Gold -0.12%
Silver -1.18%
Sovereign Bonds:
U.S. Treasury 10-yr yield +2.4bps at 3.50%
U.S. Treasury 2-yr yield +1.0bps at 4.18%
German 10-yr yield +0.8bps at 2.18%
French 10-yr yield +0.9bps at 2.63%
Italian 10-yr yield +2.6bps at 4.01%
Japanese 10-yr yield +0.5bps at 0.38%
Earnings:
BSRR, CPKF, EMMA, FFMH, FLXS, FRBK, IPAR, MCBI, NWBI, PEBK, PETS, PRK, SMBC, SSBK, TSBK, BOH, EFSC, SMBK, SYF, BKR, and BMRC before the open.
BBCP, BRO, CFB, CR, CXI, FNB, GSBC, HOPE, NBTB, RBB, TRST, UMPQ, ZION, SFBS, and IBTX after the close.
Calendar:
Federal Reserve in Blackout Period Ahead of Next Policy Meeting (Saturday)
China – Markets Closed for Lunar New Year Holiday
Building Permits for December (8 a.m.)
ECB's Panetta Speaks (9:30 a.m.)
Eurozone – Consumer Confidence Indicator for January (10 a.m.)
The Conference Board's Leading Economic Indicators for December (10 a.m.)
ECB's Lagarde Speaks (12:45 p.m.)