Market Complacency Ends As Stock Futures Plunge and Traders Hedge In Gold, Interest Rates and Volatility Futures

Stock Index Futures Plunge Globally
How do central banks respond to risk-off?
We continue to watch the recent Fed decision to shrink Repo liquidity
Future Magazine What To Watch In Futures Markets

Future Magazine What To Watch In Futures Markets

What To Watch In Markets This Week | Futures Magazine

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WHAT TO WATCH THIS WEEK IN FUTURES MARKETS

  • How do central banks respond to risk-off? President Trump and the Fed have been obvious they have tools to combat any slowdown and keep economic expansion rolling. China PBOC lowered its benchmark lending rates last week,
  • Updates and reports on the spreading coronavirus. Total confirmed cases rise above 78985 vs. 69288 last week, with 2469 deaths vs.1670 deaths, as reported last week. We continue to monitor the coronavirus situation closely. The number of reported virus cases outside mainland China spooked markets last Friday, and risk-off continues in Sunday evening trade. In recent weeks, stock markets have looked past the virus and supply-chain issues, but that thinking has changed over the weekend.
  • We continue to watch the recent decision from the FRBNY to continue to shrink its repurchase-agreement liquidity for a second straight month. Starting Feb 18, the term repo will drop from a max of $30BN  to a reduced max of $25 billion, and then starting in March term repos would be reduced to a max $20BN. 
  • US Dollar Index futures (DXH20) is approaching the psychological 100 level.

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The economic calendar:

MONDAY
Retail Sales (YoY), Industrial Production (YoY), Chicago Fed National Activity Index, Dallas Fed Manufacturing Business Index, 3 and 6 Month Bill Auction

TUESDAY
Redbook Index, S&P/Case-Shiller Home Price Indices (YoY), Housing Price Index (MoM), Consumer Confidence, 52-Week Bill Auction, 2-Year Note Auction, Fed's Clarida speech, API Weekly Crude Oil Stocks

WEDNESDAY
MBA Mortgage Applications, New Home Sales (MoM), New Home Sales Change (MoM), EIA Crude Oil Stocks Change, 5-Year Note Auction

THURSDAY
Continuing Jobless Claims, Initial Jobless Claims 4-week average, Initial Jobless Claims, Gross Domestic Product Price Index, Gross Domestic Product Annualized (Q4), Core Personal Consumption Expenditures (QoQ) (Q4), Personal Consumption Expenditures Prices (QoQ), Durable Goods Orders, Pending Home Sales, EIA Natural Gas Storage Change, Kansas Fed Manufacturing Activity, 4-Week Bill Auction, Fed's Evans speech, 7-Year Note Auction

FRIDAY
Personal Consumption Expenditures - Price Index, Core Personal Consumption Expenditure, Personal Income, Personal Consumption Expenditures, Personal Spending, Core Personal Consumption Expenditure (YoY), Wholesale Inventories, Goods Trade Balance, Chicago Purchasing Managers Index, Michigan Consumer Sentiment Index, Baker Hughes US Oil Rig Count, CFTC NC Net Positions

SATURDAY
China Non-Manufacturing PMI, NBS Manufacturing PMI
 

 

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