Morning Market Preview:
S&P futures are lower, down 9 to 10 points, as…
- The U.S. Department of Justice was said to ready an antitrust lawsuit against Google parent Alphabet due to its digital-search market dominance.
- U.S. Energy Secretary Jennifer Granholm said President Joe Biden won’t support legislation boosting oil and gas leases on federal lands in return for tapping the Strategic Petroleum Reserve.
- The U.S. Envoy for Iran Robert Malley said the White House is increasing pressure on China to stop importing Iranian oil, potentially squeezing the global oil supply.
- Infrastructure-software giant Microsoft (MSFT) is scheduled to release fourth-quarter results after the close, a key near-term test for recent technology-sector strength.
European markets declined as…
- German consumer confidence figures for February improved for the fourth straight month as individuals were increasingly optimistic about prices and their willingness to spend.
- S&P Global’s preliminary Eurozone composite Purchasing Manufacturers’ Index (“PMI”) data for January beat expectations as manufacturing- and services-sector activity recovered.
- European Central Bank President Christine Lagarde said it will continue to aggressively raise interest rates to bring inflation growth back to its 2% target.
- European Central Bank Governing Council member Peter Kazimir called for rate hikes of 50 basis points at the next two policy meetings while saying it could stop by the end of summer.
Asian markets rose as…
- Au Jibun Bank’s preliminary Japanese composite PMI for January rebounded into economic expansion territory as services-sector activity surged.
- Australian business confidence declined for the third straight month in December as profitability, business conditions, and employment all fell.
- Japanese department store sales for December improved compared to November as individuals spent more on clothing, household goods, cosmetics, and food.
- Markets in China, Hong Kong, South Korea, and Taiwan are closed for the Lunar New Year holiday.
And ahead of…
- S&P Global U.S. Preliminary Manufacturing, Services, and Composite PMI for January (9:45 a.m.)
- ECB's af Jochnick Speaks (9:45 a.m.)
- Richmond Fed Manufacturing Index (10 a.m.)
- American Petroleum Institute Crude Oil Inventory Data (4:30 p.m.)
Japan's Nikkei +1.46%, Japan's TOPIX +1.42%, China's Shanghai Composite closed, Hong Kong Hang Seng Index closed, South Korea's KOSPI closed, Taiwan's TSE closed
EuroStoxx 50 -0.11%, UK FTSE -0.25%, German DAX -0.20%, French CAC +0.06%, Italian MIB -0.07%, Spanish IBEX -0.02%
Dollar -0.14%, Japanese Yen -0.32%, Euro -0.06%, British Pound -0.53%, Swiss Franc +0.14%, Chinese Yuan unchanged
WTI Crude +0.36%
Brent Crude +0.19%
Nat Gas +3.39%
U.S. Treasury 10-yr yield -1.3bps at 3.50%
U.S. Treasury 2-yr yield -1.3bps at 4.21%
German 10-yr yield -1.6bps at 2.19%
French 10-yr yield -1.9bps at 2.64%
Italian 10-yr yield -3.1bps at 3.99%
Japanese 10-yr yield +2.8bps at 0.41%
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.
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.)