As the North American session begins the JPY is the strongest and the USD is the weakest. The USD is lower ahead of the key US CPI data. According to economists the pieces of the PPI data yesterday were more favorable for the CPI data. We will see. The expectations are for the headline CPI MoM to rise by 0.4% (that is not so good) and the Core CPI MoM to come in at 0.3% (better but still not trending to 2.0%). The YoY measures are expected at 3.4% for the headline and 3.6% for the Core.
Also released at 8:30 AM will be US retail sales and the NY Fed manufacturing index for May. Retail sales are expected rise by 0.4% with Ex Auto expected at 0.2% and Retail Control group at 0.1%. The NY Fed manufacturing index is expected of -10.0 versus -14.3 last month.
Later at 10 AM, US business inventories and NAHB housing market index will be release followed by the weekly oil inventory data 10:30 AM ET. The private oil inventory data released yesterday afternoon showed:
Crude oil stocks are expected to show a drawdown of -0.543M with Gasoline expected at +0.537M
Today's Fed Gov. Barr (10 AM ET), Fed's Kashkari (12 PM ET) and Fed Gov. Bowman (3:20) will be speaking. CNBC Eason interviews Israel's Netanyahu at 10 AM.
A snapshot of the other markets as the North American session begins has oil higher, gold lower.
- Crude oil is trading down -$0.51 or -0.65% at $77.51. At this time yesterday, the price was at $78.95
- Gold is trading up $3.31 or 0.14% at $2361.20. At this time yesterday, the price was higher at $2343.56
- Silver is trading up $0.14 or 0.51% at $28.75. At this time yesterday, the price was at $28.35
- Bitcoin currently trades at $62,442. At this time yesterday, the price was trading at $61,746
In the premarket, the major indices are little changed. Yesterday the NASDAQ index closed at a new record high. The S&P closed about 8 points short of a record level:
- Dow Industrial Average futures are implying a gain of 14.89 points. Yesterday, the index rose 126.60 points or 0.32% at 39558.12
- S&P futures are implying a gain of 1.58 points. Yesterday the index rose 25.28 points or 0.48% at 5246.69.
- Nasdaq futures are implying a decline of -3 points. Yesterday the index rose 122.94 points or 0.75% at 16511.18
European stock indices are trading mostly higher as German, France, UK trade near record highs
- German DAX, +0.40%
- France CAC , -0.22%
- UK FTSE 100, +0.14%
- Spain's Ibex, +0.40%
- Italy's FTSE MIB, +0.22% (delayed 10 minutes).
Shares in the Asian Pacific markets were mixed/higher:
- Japan's Nikkei 225, +0.08%
- China's Shanghai Composite Index, -0.82%
- Hong Kong's Hang Seng index, -0.22%
- Australia S&P/ASX index, +0.35%
Looking at the US debt market, yields are lower:
- 2-year yield 4.782%, -3.6 basis points. At this time yesterday, the yield was at 4.842%
- 5-year yield 4.418%, -2.9 basis points. At this time yesterday, the yield was at 4.491%
- 10-year yield 4.412%, -3.3 basis points. At this time yesterday, the yield was at 4.478%
- 30-year yield 4.568%, -2.5 basis points. At this time yesterday, the yield was at 4.626%
Looking at the treasury yield curve spreads:
- The 2-10 year spread is at -37.1 basis points. At this time yesterday, the spread was at -36.1 basis points.
- The 2-30 year spread is at -21.5 basis points. At this time yesterday, the spread was at -21.4 basis points.
European benchmark 10-year yields are lower:
