Briefing

• Futures point to lower open following hawkish Fed commentary

  • S&P futures vs fair value: -23.00. Nasdaq futures vs fair value: -107.00.
  • Market on track for lower opening due to rising treasury yields, depleted rate cut hopes, and oil market volatility.
  • Fed Governor Waller concerned high oil prices could lead to core inflation.

• Global markets mostly higher

  • S&P futures vs fair value: -13.00. Nasdaq futures vs fair value: -76.00.
  • Asia-Pacific: Mixed finish, Japan closed for holiday.
    • China may reform consumption tax; PBOC kept rates unchanged.
    • Australia facing fuel supply issues, 10-yr yield surpassed 5.000%.
    • Economic data: China FDI -5.7%, Hong Kong CPI +1.7% yr/yr.
    • Equity Markets: Hong Kong -0.9%, Shanghai -1.2%, India +0.4%, South Korea +0.3%, Australia -0.7%.
  • European: Mostly upbeat finish to a down week.
    • Expectations for ECB June rate hike solidifying, possibly April.
    • Brent/WTI crude spread widened to $21/bbl.
    • Spain to reduce fuel taxes; Unilever potentially selling food unit to McCormick.
    • Economic data: Eurozone January trade deficit EUR1.9 bln; Germany February PPI -3.3% yr/yr; UK February Public Sector Net Borrowing GBP14.30 bln.
    • Equity Markets: STOXX Europe 600 +0.4%, Germany DAX +0.2%, UK FTSE 100 +0.3%, France CAC 40 +0.3%, Italy FTSE MIB +0.3%, Spain IBEX 35 +0.9%.

• Futures point to lower open amid continued oil concerns

  • S&P futures vs fair value: -20.00. Nasdaq futures vs fair value: -103.00.
  • Unilever PLC in talks to sell its food business to McCormick and Co.
  • IEA Chief Fatih Birol stated Persian Gulf oil flow restoration could take six months.

• Futures point to lower open

  • S&P futures vs fair value: -23.00. Nasdaq futures vs fair value: -125.00.
  • Equity futures point to a lower opening following yesterday's losses.
  • Yesterday's losses trimmed late on Israeli PM Netanyahu's comments about reopening Strait of Hormuz and war ending sooner.
  • Oil prices are down $1.53 (-1.6%) to $94.02, but equity futures remain lower.
  • Major averages are lower for the week and below their 200-day moving averages.
  • No economic data scheduled for today.
  • Corporate news:
    • Airlines developing contingency plans for jet fuel shortages.
    • OpenAI to introduce a desktop "SuperApp."
    • FedEx: Beat EPS and revenue expectations, guided FY26 higher.
    • Super Micro Computer: Sharply lower after cofounder/employee charged with smuggling NVIDIA chips into China.
  • Global market activity: Asia-Pacific mixed (Japan closed), European indices mostly upbeat.

• Early Morning Levels

  • S&P futures vs fair value: -41.00.
  • Nasdaq futures vs fair value: -207.00.