Tuesday Morning Market Preview
Morning Market Preview:
U.S. futures are higher as...
- The ISM's Manufacturing PMI for March showed U.S. factory activity contracted more than expected. It fell to its lowest level since May 2020 as prices and employment factors declined.
- Federal Reserve Governor Lisa Cook said that inflation has started to ease but that certain pricing pressures such as wages and other geo-political factors could impact the length of restrictive policy measures.
- U.S. Treasury Secretary Janet Yellen said that the banking sector appeared to be stabilizing but that regulators are prepared to take additional actions if needed.
- McDonald's (MCD), typically considered a "recession proof" company, is temporarily closing its U.S. corporate office this week. It's getting ready to inform employees of a significant round of planned layoffs.
European markets rose as...
- Eurozone Consumer Expectations Survey showed that inflation expectations fell for a second consecutive month as pricing pressures appear to be subsiding amidst a backdrop of signals that the central bank may be close to pausing rate hikes.
- Eurozone PPI for February showed input prices falling for a fifth straight month as plummeting energy prices led the majority of the move lower.
- European Central Bank Governing Council member Robert Holzmann would not rule out another 50-basis point rate increase but said that the financial sector turmoil would have to prove itself to be contained.
- Finland officially joined NATO today. This marks the latest addition to the military alliance that was brought about from Russia's invasion of Ukraine.
Asian markets gained as...
- South Korea’s CPI for March fell to a one-year low, hitting an annual growth rate of 4.2%, bolstering the chances the central bank ends rate hikes.
- The Reserve Bank of Australia announced a pause to its nearly yearlong rate tightening cycle, citing substantial slowdowns in many parts of the economy.
- The Chinese yuan has overtaken the U.S. dollar as the most traded currency in Russia, a year after Russia’s invasion of Ukraine led to multiple economic sanctions and trading embargoes from the West.
Pre-Market Levels:
S&P +0.29%, Dow +0.12%, Nasdaq +0.41%
Asia:
Japan's Nikkei +0.35%, Japan's TOPIX +0.30%, China's Shanghai Composite +0.49%, Hong Kong Hang Seng Index -0.66%, South Korea's KOSPI +0.33%, Taiwan's TSE Closed
Europe:
EuroStoxx 50 +0.72%, U.K. FTSE +0.04%, German DAX +0.88%, French CAC +0.59%, Italian MIB +0.39%, Spanish IBEX +1.02%
Currencies:
Dollar +0.05%, Japanese Yen +0.45%, Euro +0.03%, British Pound +0.60%, Swiss Franc +0.10%, Chinese Yuan +0.08%
Risk:
VIX +0.97%
Bitcoin +0.43%
Ethereum +2.11%
Growth:
WTI Crude +0.90%
Brent Crude +0.86%
Nat Gas +1.53%
Copper +0.20%
Safety:
Gold -0.16%
Silver +0.25%
Sovereign Bonds:
U.S. Treasury 10-yr yield +3.0 bps at 3.46%
U.S. Treasury 2-yr yield +2.9 bps at 4.01%
German 10-yr yield +8.4 bps at 2.33%
French 10-yr yield +8.3 bps at 2.84%
Italian 10-yr yield +9.5 bps at 4.19%
Japanese 10-yr yield +6.4 bps at 0.44%
Earnings:
BLQC, CRTD, FTFT, HLYK, LFCR, MLRT, NSAV, NXPL, PBIO, SVT, VKIN, LNN, AYI, MSM, KIRK, and UAVS before the open.
MGOL, NG, RGP, SGH, UGE, and KRUS after the close.
Calendar:
South Korea – CPI for March
Reserve Bank of Australia Rate Policy Decision
Germany – Exports, Imports for February (2 a.m.)
Eurozone – Consumer Expectations Survey (4 a.m.)
Eurozone – PPI for February (5 a.m.)
BOE's Tenreyro Speaks
BOE's Pill Speaks
Durable Orders, Shipments for February (10 a.m.)
Factory Orders for February (10 a.m.)
JOLTS Job Openings for February (10 a.m.)
Fed's Cook Speaks
American Petroleum Institute Crude Oil Inventory Data (4:30 p.m.)