Value vs. Growth Technical Outlook
What’s in Today’s Report:
- Value vs. Growth Technical Outlook
Futures are moderately higher following a surprise rate cut by Chinese authorities.
Officials in China announced a larger than expected rate cut to the 5-year Loan Prime Rate (15 bps vs. (E) 5 bps) in a move that potentially signals greater ongoing support for the economy (if China can reopen and authorities substantially support the economy that would remove a big headwind on stocks).
Economic data was mixed overnight as German PPI remained hot (2.8% vs. (E) 1.2% m/m) while UK Retail Sales modestly beat estimates (rising 1.4% vs. (E) 0.2%) but neither number is altering the rate hike outlooks for the ECB or BOE (both are expected to continue to hike rates over the summer).
Today there are no notable economic reports and no Fed speakers scheduled so look for momentum and shorter-term technicals to drive trading.