Morning Call Script - 05 Feb 2024
Overnight asset drivers & the impending data calendar
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What’s Moved Overnight
JPow's "60 Minutes” interview aired on Sunday and repeated his Fed presser.... the central bank will proceed carefully with rate cuts this year, slower than market expectations and will wait for more evidence that inflation is moving sustainably down to 2%.
Another weekend, another story on stock support for China. Meanwhile Trump floats increased Tariffs on the campaign trail.
China Caixin Services PMI hit 52.7 vs prev 52.9 leaving the composite at 52.5. More good news for Indian assets as their PMI composite popped to 61.2 from prev 58.5.
After opening stronger, DXY has retraced to Friday's closing clearing rate ... eg. AUD 0.6515 after trading as low as 0.6485, USDJPY 148.40, after hitting a two month low 148.83.
Crude and Brent are stabilising following US strikes on targets in Syria, Iraq and also Houthis holdouts in Yemen
Over all a quiet week with a wave of Fed speak and a key UST 30-year auction on Thursday.
How much appetite will their be for the long end following strong growth data, Fed pushback on cuts, QRA announcement, QT continuing and the recent rally on NYCB concerns... Will the end user want more paper at these levels?
For greater details on the overnight news stories, current macro themes, and a comprehensive look at the week ahead, look out for today’s edition of The Morning Hark. Landing in the inbox of PRO subscribers around 7.15GMT (2.15 EST).
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Have a great day, and keep smiling!
Podcast for the Commute
DB CIO Weekly - More jobs, no early cuts
The Day Ahead
EUR (08:50): France Services and Composite PMI
EUR (08:55): Germany Services and Composite PMI
EUR (09:00): Eurozone Services and Composite PMI
GBP (09:30): Services and Composite PMI
CAD (14:30): Services and Composite PMI
USD (15:00): ISM Services PMI and Employment Index
CAD (15:30): BoC Markets Participants Survey
USD (19:00): Fed's Bostic
Stay informed throughout the day with our new commentary channel (‘Intraday Market Colour’) highlighting key notes, topics du jour, and HarksterHQ’s market updates around key data points and headlines.
Available on the HarksterPRO Research Platform.
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