Market Focus – Before The Opening Bell Tuesday, January 16

The economic numbers are generally looking good going into 2018. Consumer Spending is solid and is complemented by acceleration in Housing as well as Manufacturing. For the Federal Reserve, the week’s results may hint at a less than gradual process for this year’s Rate Hikes. Both the BoJ and China denied any changes in their respective programs. Most economic data last week, were however, positive.

Today, Tuesday, forecasters are looking for continued strength in the January’s Empire State Index, at a consensus 18.6 vs December’s 18.0. But there was a slight hint of weakness in the December Report as unfilled orders contracted for a second month and hiring slowed noticeably.

The Yen, Euro and many Emerging Market Currencies are getting the attention of Investors. This is intensifying the siege on the USD and at the same time, shows promise of accelerating economic growth. On Friday, Chancellor Angela Merkel reached a preliminary accord with Germany’s Social Democrats to form a coalition government.

Oil prices have surged more than 50% since the summer, a sign that investors are most probably reassessing what was once the biggest risk in the market; US Shale.

The most important question in the financial markets today is whether bond yields will keep rising and how high they will go.

Catalysts As Wall Street Opens
12:30 PM GMT   NY Empire State Manufacturing Index (Jan)
10:30 PM GMT   Australiam Westpac Consumer Sentiment (Jan)
11:30 PM GMT   Australian Home Loans (MoM) (Nov)