Morning Juice – European Session Prep

Good Morning Traders! This Thursday we get German IFO data, as well as the ECB Interest Rate decision.

Here is what to expect from today.

Sentiment

The Federal Reserve boosted interest rates on loans to banks made under an emergency lending programme introduced last year, after borrowing increased in recent weeks as institutions took advantage of the favourable financing terms.

An auction of Japan’s longest-dated national bonds garnered sluggish investor demand as speculation intensified that the central bank is preparing to quit the world’s only subzero interest rate policy. The bid-to-cover ratio for 40-year sovereign securities fell to its lowest level since 2011.

The Bank of Canada kept its policy rate unchanged for the fourth week in a row, stating expressly for the first time that it will not need to raise it again if the economy evolves as expected.

Australian Prime Minister Anthony Albanese said Thursday that a second consecutive budget surplus is a “possibility” in the current fiscal year, as he unveiled revisions to previously approved tax cuts to help middle-income workers. Albanese commented on the text of a speech.

According to a respected think group, the next UK administration will have the most difficult mix of tax and spending challenges in 70 years. According to the Institute for Fiscal Studies, the winner of the upcoming general election will find it “more difficult to reduce debt as a fraction of national income than in any parliament since at least the 1950s” due to a combination of high interest rates and slow growth.

Oil prices climbed to near a one-month high after US stocks fell far more than expected and China announced extra stimulus.

Docket
04:00 ET
German IFO Expectations
Forecast 84.8 | Prior 84.3 | Range 85.5/85.3

German IFO Current Conditions
Forecast 88.5 | Prior 88.5 | Range 89.5/88.0

German IFO Business Climate
Forecast 86.6| Prior 86.4 | Range 87.5/84.7

08:15 ET
ECB Interest Rate
Forecast 4.5% | Prior 4.5% | Range 4.5%/4.5%

ECB Deposit Rate
Forecast 4.0% | Prior 4.0% | Range 4.0%/4.0%

Earnings
07:00 ET
American Airlines Q4 2023 Earnings
Est. EPS $0.12 | Est Rev. $13.04B

Good Luck today, Traders!