Good Morning Traders!
it is Tuesday 17th of January and the US Markets return today following an extended holiday weekend, here are some things to look out for ahead of today's session
Sentiment:
The dollar index rose for the second day in a row, while the yield curve steepened. Faster-than-expected wage increases in the United Kingdom weighed on gilts. European stocks fell for the first time in five days, while US equity futures continued to fall.
Japan's benchmark yield briefly surpassed the central bank's floor for a third day as the Bank of Japan began a two-day policy meeting. The yen fell for the second day in a row. Most economists expect the BoJ to remain unchanged, though market observers do not rule out another widening of the yield band to 0.75 or higher, or the removal of the yield curve control.
According to a new report from Boston Consulting Group, global trade will be stagnant for the next decade as the war in Ukraine reshapes strategic alliances and alters the flow of cross-border commerce.
Nonetheless, data from the US government through November indicate that last year's trade with China is on track to break records, defying fears of "decoupling."
More major US banks reported earnings this morning, with Goldman Sachs missing on EPS and revenue compared to estimates. However, their FICC and trading revenue came in at a beat, $2.69b on estimates of $2.37b.
Morgan Stanley also posted earnings this morning, with EPS as expected, and revenue beating expectations. Their FICC sales and trading revenue came in at a miss, $1.42b on estimates of $1.68b.
Overall, we are seeing mixed results from investment banks from the 4th quarter of 2022.
Docket:
8:15 AM ET
Canadian House Starts, Annualized for December
Median Forecast: 257.6K | Prior: 264.2k | Range: 275K / 245K
8:30 AM ET
Canadian CPI for December
YoY - Median Forecast 6.4% | Prior 6.8% | Range 6.8%/6.2%
MoM - Median Forecast -0.5% |Prior 0.1% | Range -0.1%/-0.7%
NY Fed Manufacturing for January
Median Forecast: -8.6 | Prior: -11.20 | Range: -3.1 / -15.5
11:30 AM ET
US sells $60 bln of 3-Month bills
US sells $48 bln of 6-Month Bills
Speakers:
9:00 AM ET
IMF's Gopinath & German Fin. Min. Lindner Speak - Stemming the cost of living crisis
3:00 PM ET
Fed's Williams Speaks - welcoming remarks at an event about equitable growth, no text or Q&A
Earnings
16:05 PM ET
United Airlines Q4 2022 Earnings
Estimated EPS: $2.21
Estimated Revenue: $12.225 bln
Good luck!
