Oil Thresholds to Watch This Week
What’s in Today’s Report:
- All About Oil – Key Price Thresholds to Watch This Week
- March ISM Services Index Takeaways – A Fresh Whiff of Stagflation
Stock futures reversed from modest overnight gains to trade with mild losses during the last hour as hopes for a U.S.-Iran ceasefire faded ahead of tonight’s deal-deadline.
Geopolitically, news that Iran has “rejected any temporary ceasefire with the U.S.” saw oil turn higher from overnight lows with WTI revisiting YTD highs near $115/barrel in pre-market trade.
Economically, the Final EU Composite PMI fell to 50.7 in March from 51.9 in February, slightly above the Flash reading of 50.5 but the data is not materially impacting markets given elevated geopolitical angst.
Looking into today’s session, there are two notable domestic economic reports to watch: Durable Goods (E: -0.2%) this morning and Consumer Credit (E: $12.0B) this afternoon.
Additionally, there are two Fed officials scheduled to speak: Goolsbee (12:35 p.m. ET) and Jefferson (5:50 p.m. ET) and a 3-Yr Treasury Note auction (1:00 p.m. ET). Either speaker or any unexpected strength/weakness in the auction has the potential to move bonds which could impact equities (falling yields are the best outcome for equities today).
