Wednesday Morning Market Preview, Calendars

February 22, 2023

| C. Scott Garliss

Morning Market Preview:

S&P futures are mixed, up 2 to 3 points, as…

Deputy Treasury Secretary Wally Adeyemo said the U.S. and its allies are preparing to impose new sanctions and export controls on Russia to force peace talks in Ukraine.
Federal funds interest rate futures increased on stronger-than-expected economic growth speculation, rising from a peak rate expectation of 4.9% at the start of February to 5.36%.
S&P Global’s preliminary U.S. composite Purchasing Managers’ Index (“PMI”) data for February signaled a rebound into expansion territory, stoking inflation concerns.
The Federal Reserve will release the minutes of its most recent monetary policy meeting later today with investors awaiting more color on the interest rate outlook.

European markets declined as…

The Institute for Economic Research’s German business expectations for February rose to 88.5, improving for the fourth month in a row. Investor sentiment also rose off the heels of greater optimism within the energy and services sectors.
French business confidence for February showed a slight improvement over the previous month with confidence growing most notably in the services and retail sectors.
European Central Bank President Christine Lagarde said it's committed to bringing inflation growth back to target and will raise interest rates by 50 basis points in March to 3%.
European Statistical Office data showed regional natural gas consumption fell 20% between August and January, compared to the prior five-year average, easing the inflation outlook.

Asian markets fell as…

Chinese President Xi Jinping is said to be preparing for a summit in Moscow with Russian President Vladimir Putin as part of a push for peace talks with Ukraine.
Bank of Japan Board member Naoki Tamura said it will need to review monetary policy in the near future, stoking speculation of pending interest rate hikes.
Australia’s fourth-quarter wage price index growth was weaker than anticipated, falling compared to the third quarter, and taking pressure off of the central bank to raise interest rates.
The People’s Bank of China added another $14 billion worth of liquidity to the financial system via reverse repurchase operations in an attempt to support economic growth.

And ahead of…

FOMC Meeting Minutes (2 p.m.)
American Petroleum Institute Crude Oil Inventory Data (4:30 p.m.)

Pre-Market Levels:

S&P +0.07%

Asia:

Japan's Nikkei -1.34%, Japan's TOPIX -1.15%, China's Shanghai Composite -0.47%, Hong Kong Hang Seng Index -0.51%, South Korea's KOSPI -1.68%, Taiwan's TSE -0.93%

Europe:

EuroStoxx 50 -0.79%, UK FTSE -1.04%, German DAX -0.60%, French CAC -0.78%, Italian MIB -1.67%, Spanish IBEX -1.21%

Currencies:

Dollar +0.04%, Japanese Yen -0.27%, Euro -0.10%, British Pound -0.12%, Swiss Franc -0.03%, Chinese Yuan +0.31%

Risk:

VIX +1.62%

Bitcoin -1.23%

Ethereum -1.20%

Growth:

WTI Crude -0.83%

Brent Crude -0.87%

Nat Gas -3.23%

Copper -0.92%

Safety:

Gold +0.35%

Silver +0.01%

Sovereign Bonds:

U.S. Treasury 10-yr yield -2.0 bps at 3.93%

U.S. Treasury 2-yr yield -2.3 bps at 4.68%

German 10-yr yield -1.6 bps at 2.52%

French 10-yr yield -1.2 bps at 3.01%

Italian 10-yr yield -1.6 bps at 4.45%

Japanese 10-yr yield unchanged at 0.51%

Earnings:

AEVA, APEN, AUD, BIRD, BLUE, CLVSQ, GTHX, GTY, INTZ, JOE, LILAK, MAPS, MGEE, MLP, ONEM, PKKW, RCUS, RILY, RJF, RYAM, SAFT, SD, SNDD, SRYB, SZL, TELL, TG, TTSH, VTI, ZVOI, BCO, BRY, CERE, CRMT, DOC, DRVN, EDIT, ESCA, EVBG, GEL, IART, IBP, KLTR, NI, PLAB, RCII, SHEN, SHO, SSRM, TNL, VRT, OSTK, THRM, TRGP, UTHR, FDP, WWW, CRL, HEES, PRG, AVA, PGTI, RGEN, ROCK, SBGI, ECC, EIC, WING, and TJX before the open.

ACVA, ADEA, AINC, AMWL, ANSS, APA, ARC, ATNI, BHR, BMBL, BNL, BROS, CCAP, CCSI, CDE, CHRD, CIVI, CNNE, CPE, CPK, CSV, CTRA, DVA, ECPG, EVH, EXR, FBRT, FG, FIVN, FIX, FNF, FPI, GKOS, GNK, GOOD, LCID, LGND, LMND, LUNG, MATV, MFIN, MGNI, MGRC, MMSI, MOS, MRVI, MTTR, MYRG, NOVA, NUVA, OPAD, ORA, ORCC, PARR, PDCE, PK, PR, PWSC, RELY, ROOT, RTL, RUN, RXT, RYI, SJW, SNBR, SOI, SP, STRA, SUI, TDOC, TMDX, TNDM, TPL, TRUE, U, UCTT, UIS, USPH, VAC, WHD, ENVX, EPR, GSHD, NTAP, TPIC, ATUS, CHDN, EBAY, ERII, ETSY, JOBY, NYMT, OLO, SPOK, SSTI, VCYT, WEAV, WES, OUT, COKE, AMK, CAKE, CCRN, LXU, OGS, SM, VMI, PXD, NVDA, BELFB, DOOR, KALU, and RGR after the close.

Calendar:

G20 Finance Ministers and Central Bank Governors Meeting
Germany – CPI (Final) for January (2 a.m.)
France – Business Confidence for February (2:45 a.m.)
Germany – Ifo Business Confidence for February (4:30 a.m.)
Fed's Williams Speaks (5:30 a.m.)
MBA Mortgage Applications (7 a.m.)
FOMC Meeting Minutes (2 p.m.)
American Petroleum Institute Crude Oil Inventory Data (4:30 p.m.)