How Clients Should View Political Headlines
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What’s in Today’s Report:
- How Clients Should View Political Headlines
- Weekly Economic Preview: Inflation and Fed Minutes in Focus
Markets are trading with a risk-on tone to start the week with stock futures solidly higher, bond yields falling and the dollar declining as investors digest Trump’s Wall-Street-friendly pick of Scott Bessent for Treasury Secretary.
Economically, Industrial Production in Taiwan (a proxy for global semiconductor demand) slowed from 11.22% to 8.85% in October which could weigh modestly on tech stocks today while a German Business Sentiment gauge saw current and expected conditions deteriorate, rekindling worries about the EU economy.
Looking into today’s session, there is one second-tiered economic report to watch: Dallas Fed Manufacturing Survey (E: -3.9) but it should not meaningfully move markets.
There are no Fed officials scheduled to speak today however there is a 2-Yr Treasury Note auction at 1:00 p.m. ET. A good portion of today’s early rally in stocks futures can be attributed to the pullback in yields this morning, so a soft auction that sends yields back higher is the biggest risk to the early week gains today.
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