- As bank earnings season got underway and traders weighed their wagers that the Federal Reserve may be reaching the end of its rate-hiking cycle, US equities futures fell on Friday.
- Futures for the Nasdaq 100 increased their loss to 0.6% after the benchmark index's actual price increased by approximately 2% the day before. After data showing lower US factory-gate inflation and an increase in the number of People claiming unemployment benefits on Thursday, the S&P 500 index remained constant even though the underlying gauge had risen the most this month. The World Index of MSCI increased for a second day after reaching its highest level in more than ten weeks.
- In the meantime, a hectic earnings season got underway with JPMorgan and Wells Fargo. In the premarket, Wells Fargo shares decreased by nearly 1% after the lender upped its credit loss provisions, among other things for loans related to commercial real estate.
- Treasury yields decreased, with the rate-sensitive two-year sector maintaining below 4%, as bond traders increased their bets that the Federal Reserve will reduce interest rates by the end of 2023.
- Crude was on track for a fourth week of rises as a result of a weaker currency and indications of a tightening global economy.
- IEA: Extra cuts by OPEC+ will push the world oil supply down 400,000 bpd by end-2023.
- Credit Suisse sees an 80% chance of a US recession over the next 12 months vs the earlier projection of 60% by Q1 2024.
- Fed's Bostic: Recent inflation data encouraging however prices are still increasing too quickly. The Fed needs to do more.
- JPMorgan jumps 5.3% on boosted FY net interest income outlook. (European banks extend gains).
