Sevens Report – Technical Targets: Santa Rally vs. Grinch Selloff
What’s in Today’s Report:
- Technical Targets: Santa Rally vs. Grinch Selloff
Futures are slightly higher mostly on momentum following a generally quiet night of news.
Japanese stocks declined 1% and gave back some of Thursday’s rally on more hawkish chatter, as a rate hike later this month remains a distinct possibility.
Economic data was mixed as Japanese Household Spending fell more than expected (-3.% vs. (E) 1.5%) while German Manufacturers’ Orders beat estimates (1.5% vs. E) 0.5%).
Today focus will be on economic data and the most important report will be the September Core PCE Price Index (E: 0.3% m/m, 2.9% y/y). This is a delayed report from the government shutdown and it’s “old” data at this point, but it’s also the first major inflation report markets have seen in months and for this rally to continue, we’ll need to see in-line data that does not hint at any sudden rise in inflation (which could jeopardize another Fed rate cut).
Other economic reports today include Consumer Sentiment (E: 52.0) and Consumer Credit (E: $9.4B), but unless there’s a major surprise, that shouldn’t move markets.
