The various conflicts and threats across eastern Europe and the Middle East will remain supportive for energy in the near term, but it already appears that some of the supply and production disruptions are being…said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.
The various conflicts and threats across eastern Europe and the Middle East will remain supportive for energy in the near term, but it already appears that some of the supply and production…said Tyler Richey, co-editor at Sevens Report Research. Click here to read the full article.
supply concerns continue to linger after production and pipeline outages overseas buoyed prices last week…Tyler Richey, co-editor at Sevens Report Research, told MarketWatch. Click here to read the full article.
What’s in Today’s Report:
Markets are trading with a risk-on tone this morning as U.S. equity futures track global shares higher after Powell’s testimony helped stabilize bond markets yesterday while investors look ahead to today’s CPI report.
Chinese inflation data was cooler than feared o/n with CPI dipping to 1.5% vs. (E) 1.8% and PPI falling to 10.3% vs. (E) 11.3% Y/Y which is helping ease inflation concerns today.
Looking into today’s session, the December CPI report (E: 0.4%, 7.1%) will be the main focus of markets early with the annual figures expected to hit a fresh multi-decade high. But as long as the headline and core figures are not materially “hotter” than feared, this week’s relief rally, led by tech shares, should be able to continue amid further stabilization in bond markets.
Outside of the early inflation data, there is one Fed speaker to watch: Kashkari (1:00 p.m. ET) as well as a 10-Year Treasury Note auction at 1:00 p.m. ET. And as long as Kashkari does not contradict any of Powell’s comments from yesterday regarding the balance sheet runoff coming “later in the year,” and the auction doesn’t spark a new move higher in yields, then risk-on money flows should be able to continue.
A sharp rise in Treasury yields which begins to drive real interest rates higher is a “major risk to the gold market…analysts at Sevens Report Research wrote. Click here to read the full article.
What’s in Today’s Report:
Stock futures are down modestly this morning, but off the overnight lows in sympathy with rising European shares while Asian markets declined on Chinese regulatory concerns and fresh COVID lockdowns in Hong Kong.
Final December Composite PMI’s were slightly disappointing but investors are already looking ahead to 2022.
Today, there are three economic reports to watch: Motor Vehicle Sales (E: 13.2M), ADP Employment Report (E: 414K), PMI Composite Final (E: 56.9). It will be important for the latter two to point to continued growth but not at a pace that would cause an additional hawkish shift by the Fed as that would likely send rates sharply higher and act as a headwind on broader equity markets.
There are no Fed speakers today but the minutes from the December FOMC meeting will be released at 2:00 p.m. ET.
Optimism about omicron continues to help drive risk assets higher as markets continue to believe…said the president of the firm Seven Reports, Tom Essaye, in a note. Click here to read the full article.
What’s in Today’s Report:
U.S. stock futures are trading lower along with most global equity markets today as investors digest the hawkish shift by most global central banks this week while concerns about the health of the economy rebound continue.
Economically, Eurozone HICP (their CPI equivalent) rose 0.4% vs. (E) 0.5% in November, easing some of the recent inflation concerns while the latest German Ifo Survey missed estimates on both current and future business expectations metrics which weighed on the regional growth outlook.
Today, there are no economic reports due out in the U.S. however there are two Fed speakers to watch: Daly (1:00 p.m. ET) and Waller (1:00 p.m. ET). The market will want to see Fed chatter echo Powell’s mostly dovish tone from the press conference on Wednesday and any hints at a more aggressive or sooner rate hiking cycle will cause more volatility today.
Finally, today is quadruple witching options expiration so expect very high trading volumes along with the threat of amplified moves as traders continue to digest this week’s hawkish pivot amid year-end rebalancing.
Omicron is causing significant volatility in the energy complex as the impact on demand is not yet known…analysts at Sevens Report Research wrote in Wednesday’s newsletter. Click here to read the full article.
