Valuation Update

What’s in Today’s Report:

  • Valuation Update – What Will Cause a Further Rally?
  • Weekly Market Preview
  • Updated Economic Outlook

Futures are modestly lower this morning as last week’s gains are digested following a quiet holiday weekend.

There were no US-China trade developments since Friday however negotiations are set to resume in Washington this week.

Economically, the British Labour Market Report largely met expectations while the headline to the German ZEW Survey for February fell to a more than 4-year low, underscoring analysts concerns about German growth expectations.

Looking ahead to the U.S. session today, there is one Fed speaker ahead of the open: Mester (8:50 a.m. ET) and one economic report due out in the first hour of trade: Housing Market Index (E: 59.0).

The market’s main focus will continue to be U.S. – China trade negotiations as a successful deal or at the very least extension to the next tariff deadline (March 1st) has largely been priced into stocks at current levels, so any renewed tensions could hit stocks, potentially hard, in the coming sessions.