Morning Juice – US Session Prep (2nd March)

Sentiment
Stocks fell and the dollar rose as military operations in the Middle East escalated, sending oil to its highest level in four years and raising concerns that higher inflation would weigh on the global economy.
S&P 500 futures fell 1.1%, as Asian and European markets also fell. Brent crude rose 8% to almost $79 per barrel as the battle effectively closed the Strait of Hormuz, a critical conduit off Iran’s coast that transports roughly one-fifth of the world’s oil. Natural gas prices in Europe rose by up to 38%, the highest level since August 2023.
As investors reduced their risk exposure, safer assets became more in demand. Gold approached $5,400 per ounce. The dollar index rose 0.6%.
Meanwhile, Treasury yields climbed across the curve as investors considered whether higher energy prices meant the Federal Reserve was less likely to decrease interest rates.

Docket
09:45 ET
US S&P Manufacturing PMI February Final
Forecast: 51.4 | Prior: 51.2 | Range: 52 / 51.2

10:00 ET
US ISM Manufacturing PMI for February
Forecast: 52 | Prior: 52.6 | Range: 53.2 / 49.8

Speakers
09:00 ET
ECB’s President Lagarde speaks at a Women’s Day event along with Bundesbank President  Nagel and Greek central bank Governor Stournaras.

09:15 ET
BoC’s Kozicki speaks on monetary policy regulation at a conference hosted by Norges Bank in Oslo.
The Bank of Canada will publish the remarks on its website.

16:10 ET
RBA’s Bullock speaks at the AFR Business Summit in Sydney.

Good luck!