Quarterly Bank Results Weak
STOCK INDEX FUTURES
Stock index futures are lower after two large banks posted big drops in profit.
The January Empire State manufacturing index was -32.9 when -8.1 was predicted.
Futures are performing well for the news.
The ZEW Indicator of Economic Sentiment for Germany improved sharply by 40.2 points from a month earlier to +16.9 in January 2023, returning into positive territory and remaining above market expectations of -15.0.
Average weekly earnings, including bonuses in the U.K., increased by 6.4% year-on-year to the most since the three months to May, and topping market estimates of 6.2%.
Canadian business sentiment weakened as more businesses than usual expect their sales to decline, and consumers reduced their spending plans. The central bank’s business outlook indicator fell to 0.07 in the fourth quarter, from a previously revised 1.74.
Australian consumer sentiment improved in January, according to a private survey.
The Bank of Japan will deliver its latest policy decision Wednesday.
INTEREST RATE MARKET FUTURES
Futures are lower.
John Williams of the Federal Reserve speakers will speak at 2:00 central time.
March fed funds futures remain above the triple top pattern at 95.3150.
According to financial futures markets currently, there is a 92.0% probability that the Federal Open Market Committee will increase its fed funds rate by 25 basis points at the February 1 policy meeting and an 8.0% probability that the rate will be hiked by 50 basis points.
Although futures are lower today, the longer term outlook is for higher prices.
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