Five Stories Moving the Market
Editor’s Note: There isn’t any commentary today as I gave an out-of-the-office talk yesterday.
Also, please note, I will be out of the office next week.
Five Stories Moving the Market:
Senate Minority Leader Chuck Schumer (D-NY) threw a wrench into a Republican plan to avert a government shutdown this weekend, saying there wasn’t enough Democratic support to advance the measure funding federal agencies through September 30 – WSJ. (Why you should care – historically, shutdowns have led to above average returns for the S&P 500 Index over the following year)
President Donald Trump is close to nominating Federal Reserve governor Michelle Bowman as the central bank's new vice chair for supervision, according to multiple media reports, tapping a former Kansas banking commissioner as the Fed’s top banking cop – yahoo!finance. (Why you should care – the decision should be an incremental positive for banks and other financial institutions due to less regulatory expenses)
American consumers have had a lot to fret about so far this year, between never-ending tariff headlines, stubborn inflation and most recently, fresh fears about a recession; these concerns seem to be hitting spending by both rich and poor, across necessities and luxuries, all at once – WSJ. (Why you should care – slowing consumer demand is likely to spur the Federal Reserve to support economic growth)
Hedge funds have slashed their bets on equities and cut their borrowings from banks?as they struggle to deal with surging market volatility triggered by uncertainty around a global trade war and the potential for slowing economic growth – FT. (Why you should care – the lack of exposure to the market means many of those money managers could be forced to chase in the event of a rally)
The Bank of Canada trimmed its key policy rate by 25 basis points to 2.75% and raised concerns about inflationary pressures and weaker growth stemming from trade uncertainty and tariffs – Reuters. (Why you should care – after seven consecutive rate cuts, the BOC signaled it may now be on hold)
Economic Calendar:
Eurozone – Industrial Production for January (6 a.m.)
U.S. - PPI for February (8:30 a.m.)
U.S. - Initial Jobless Claims (8:30 a.m.)
U.S. - Continuing Claims (8:30 a.m.)
Treasury Auctions $22 Billion in 30-Year Bonds (1 p.m.)
Fed's Balance Sheet Update?(4:30 p.m.)