Morning Juice – US Session Prep (24th October)
Sentiment
US market futures rose as trade tensions eased and investors maintained their bets on a Fed interest rate reduction ahead of a crucial inflation report later Friday.
S&P 500 contracts were up nearly 0.3% after a tech-led rise on Wall Street left the benchmark on track for a second weekly gain of more than 1%. Futures for the Nasdaq 100 rose 0.5%.
Intel stock jumped in pre-market trade in New York following an encouraging revenue outlook.
Ford gained after indicating that it will recover from a severe fire that crippled a key supplier by the following year. Newmont fell as the precious metals miner’s guidance disappointed investors.
With money markets pricing in a Fed rate cut next week and Treasuries poised for their best monthly performance since February, investors will likely overlook any signs of stubborn inflation in Friday’s consumer price index report, which follows a more-than-three-week data vacuum caused by the US government shutdown. Treasury rates and the dollar index remained stable.
Brent crude oil remained above $66 per barrel after surging by more than 5% after Trump announced sanctions on Russian producers.
Gold is set to end a nine-week winning streak after a steep drop as the market evaluated a gain that had driven the commodity to overbought levels. Bullion fell around $4,050 per ounce on Friday, putting it on course for a 4.6% weekly fall, the most since June 2021.
Docket
8:30 ET
US CPI for September
YoY – Forecast: 3.1% | Prior: 2.9% | Range: 3.2% / 2.9%
MoM – Forecast: 0.4% | Prior: 0.4% | Range: 0.5% / 0.2%
Core YoY – Forecast: 3.1% | Prior: 3.1% | Range: 3.2% / 3%
Core MoM – Forecast: 0.3% | Prior: 0.3% | Range: 0.4% / 0.2%
09:45 ET
US S&P PMI Flash for October
Services– Forecast: 53.5 | Prior: 54.2 | Range: 54.2 / 52
Manufacturing – Forecast: 51.9 | Prior: 52 | Range: 52.9 / 51
Composite – Forecast: 53.1 | Prior: 53.9 | Range: 54 / 51.5
10:00 ET
University of Michigan Sentiment October Prelim
Sentiment Final – Forecast: 54.6 | Prior: 55 | Range: 55.5 / 49.9
1 Yr Inflation – Forecast: 4.6% | Prior: 4.6% | Range: 4.7% / 4.6%
5 Yr Inflation – Forecast: 3.7% | Prior: 3.7% | Range: 3.8% / 3.7%
Speakers
08:45 ET
ECB’s Nagel is speaking in a Panel at a summit called “Shifting Power, Shaping Prosperity”, Berlin Global Dialogue. The title of the discussion will be Global Shifts and Eurozone Anchors.
Good luck!
