US EARLY MORNING: US equity futures are seeing some stability after the post-Fed slide, but still on course to finish the week lower

US PRE-MARKETS: After the downside seen in wake of the hawkish Fed policy announcement on Wednesday, US equity futures are regaining some stability, and trading with very slight gains. However, the complex is still on course to finish red for the week. Treasury yields are mixed, with near-term yields lower by 2-3bps, though longer-term yields are up by 0-2bps. The Dollar Index is a little better than flat, largely as a function of the JPY downside, with the BoJ's policy announcement providing no surprises (see here), and Governor Ueda generally refraining from hawkishness in his post meeting press conference (see here). Meanwhile in Europe, the EUR has pared some of its losses following soft French PMI data (downside surprise, see here), with the German numbers coming in better than expected (see here). US PMI data will be out later today, and so far, the regional Fed manufacturing reports have been mixed. Traders will also be looking to commentary from Fed officials today (2023 voters Cook and Kashkari, as well as 2024 voter Daly) for further framing of the central bank's recent hawkish hold.


DAY AHEAD: Flash PMI data will be in focus, and both the manufacturing and services gauges are seen improving very slightly; this week, the Fed upgraded its language on the economy, so economic metrics are not expected to slip too aggressively in the near-term. After the Fed’s hawkish hold this week, policymakers Cook (voter), Daly (2024 voter) and Kashkari (voter) are due to make remarks. Baker Hughes Rig Count data will be released in the afternoon. On the ECB speaker's slate, VP de Guindos will give remarks followed and a Q&A. On the credit ratings docket, S&P is set to review Germany (currently AAA), and DBRS is set to review France (AA).









22 Sep 2023 - 09:30- Research Sheet- Source: Newsquawk

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