Daily digest market movers: Fed speakers easing this weeks data releases
- This Friday kicked off with the final reading of the S&P Global Manufacturing PMI for February. Expectations were for an unchanged reading at 51.5, though the number came out higher at 52.2.
- At 15:00 GMT, both the University of Michigan and the Institute for Supply Management (ISM) was released:
- For the final February reading from the University of Michigan:
- Consumer Sentiment went from 79.6 to 76.9.
- The Inflation expectations remained steady at 2.9%
- The ISM PMI data release will contain the following elements:
- The headline Manufacturing PMI declined from 49.1 to 47.8.
- The Manufacturing Employment subcomponent contracted further from 47.1 to 45.9.
- The New Orders Index was at 52.5, and declined to 49.2
- The Prices Paid Index followed the above trend, and slid lower as well from 52.9 to 52.5.
- For the final February reading from the University of Michigan:
- The Federal Reserve has its own schedule this Friday:
- Richmon Fed Governor Tom Barkin said that a rate hike is not needed with the contraction in some sectors. Though the Fed should not be in a hurry to cut, even if there are no cuts for this year.
- Fed Board of Governors member Christopher Waller and Dallas Fed President Lorie Logan released comments as well during a panel discussion. They see the Fed to be gradually restrictive while the balance sheet runoff should be at a more slower pace.
- Raphael Bostic, head of the Atlanta Fed, is due to speak at 17:15 GMT.
- San Francisco Fed President Mary Daly and Federal Reserve Bank of Kansas City President Jeffrey Schmid will participate in a panel discussion at 18:30 GMT.
- Fed Board of Governors member Adriana Kugler will speak at around 20:30 GMT.
- At 16:00 GMT, the Fed will release its Monetary Policy Report which will be sent to Congress before the semi-annual hearings take place next week.
- Equities are turning red in the aftermath of the Global Manufacturing print, which builds the case for a steady-for-longer rate stance from the Fed.
- According to the CME Group’s FedWatch Tool, expectations for a Fed pause in the March 20 meeting are at 97%, while chances of a rate cut stand at 3%.
- The benchmark 10-year US Treasury Note trades around 4.20%, the lower end for this week
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