Even though nonfarm payrolls aren't until next Friday, there is still a lot of news moving markets heading toward the weekend.
Stocks continue to look tired following the euphoric gains seen earlier in the week. US index futures are down 0.1% with Dow futures hovering near 21,000. The FTSE and Dax are down 0.25% while the Nikkei fell 0.5%.
Considering how far indices have come, they continue to be well supported, but it wouldn't take much to spark profit-taking or a correction. Reports US Attorney General Sessions has stepped away from investigations involving Russia since he had contact with the Russian ambassador during the 2016 campaign reminds the street that the political road can be a rocky one. Traders are still waiting for answers to key questions on Trump promises particularly when and how much?
The US Dollar continues to rally on speculation the Fed could raise interest rates on March 15th. This week, the heavy hitters at the Fed have been out building up expectations including NY Fed President Dudley and Governor Powell. Even Governor Brainard, who usually has been the one to dump cold water on rate hike talk, has stepped back from the dovish side. Today the Fed's two top leaders, Chair Yellen and Vice Chair Fischer have the opportunity to weigh in as well which could spark trading in currency markets.
The US Dollar's gains has knocked down most other currencies with Gold down 0.6% and JPY, CAD and NZD also falling. GBP is down against EUR and USD today amid the potential for disputes between the PM May and the SNP over a possible second Scottish referendum and between the two Houses of Parliament over amendments to the Brexit bill.
The one exception today is in the Euro where recent poll results in the Netherlands and France suggest Euroskeptics may be losing ground. A new French poll shows Macron taking the first round lead from Le Pen. Meanwhile Fillion continues to lose key supporters and could drop out of the race with former PM Juppe ready to step in if that happens. Also talk of a possible World Bank loan to Greece to jumpstart youth employment programs could be a positive easing stress in another flashpoint.
Service PMI reports are also out from around the world today which could have some impact on trading heading into what could potentially be a really big month for market moving news.
Costco $1.17 vs street $1.36
Japan unemployment rate 3.0% as expected
Japan consumer prices 0.4% as expected
NZ ANZ commodity prices 2.0% vs previous (0.1%)
Germany retail sales street 0.7% vs previous (1.1%)
Italy GDP street 1.1%
Eurozone retail sales street 1.5% vs previous 1.1%
Service PMI reports:
Australia 49.0 vs previous 54.5
Japan 51.3 vs previous 51.9
China Caixin 52.6 vs previous 53.1
UK 53.3 vs street 54.1
Germany 54.4 as expected
France 56.4 vs street 56.7
Italy 54.1 vs street 52.8
Spain 57.7 vs street 55.2
Upcoming significant economic announcements include:
10:15 am EST FOMC Evans and Lacker panel
12:15 pm EST FOMC Powell speaking
12:30 pm EST FOMC Fischer speaking
1:00 pm EST FOMC Yellen speaking
Upcoming Service PMI reports:
9:45 am EST US Markit street 54.0
10:00 am EST US ISM street 56.5
Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.