December S&P 500 futures (ESZ22) are trending down -0.40% this morning after three major US benchmark indices closed higher on Friday, demonstrating their strongest weekly advance in almost five months as market participants rotated back into risk-sensitive asset classes after weaker-than-expected U.S. inflation report. Three major U.S. stock indexes were fueled primarily by gains in the Oil & Gas, Consumer Services, and Technology sectors. 

In Friday's trading session, three major US indices closed in the green, backed by energy and tech stocks amid bets for a less hawkish Federal Reserve following recent soft inflation reading. 

"The CPI downside surprise aligns with a broad range of indicators pointing to a downshift in global inflation that should encourage a moderation in the pace of monetary policy tightening at the Fed and elsewhere," said Bruce Kasman, head of economic research at JPMorgan.

However, Federal Reserve Governor Christopher Waller warned that while the central bank is considering smaller rate hikes, it has no plans of softening its stance on inflation given that the reading was still well above the Fed’s 2% annual target.

After last week's inflation data, U.S. rate futures have priced in an 80.6% chance of a 50 basis point rate increase and a 19.4% chance of a 75 basis point hike at December's monetary policy meeting. 

In the coming week, investors will be monitoring a spate of economic data, including the fresh producer price index, exports, imports, retail sales data, building permits, housing starts, and existing home sales.

The U.S. economic data slate is largely empty on Monday. 

In the bond markets, United States 10-Year rates are at 3.899%, up +1.82%.

The Euro Stoxx 50 futures are up +0.21% this morning, continuing the previous week’s positive tone, but those gains are likely to be limited amid rising concerns about the region's economic strength. The European Central Bank still has a lot of work to do before it catches up with the extent of the Fed’s tightening, while inflation in Eurozone is still rising. Eurozone CPI data due later this week is expected to stand at +10.7% y/y in October, compared to +9.9% y/y in September. 

In addition, Morgan Stanley said in a note that Britain and the Eurozone economies might fall into recession next year, estimating the global economy to grow by just 2.2% next year.

Switzerland Producer Price Index (PPI) and Eurozone Industrial Production data were released today.

Switzerland's October PPI has been reported at 0.0% m/m, weaker than expectations of +0.2% m/m.

Eurozone September Industrial Production stood at +0.9% m/m and +4.9% y/y, stronger than expectations of +0.3% m/m and +2.8% y/y.

Asian stock markets today closed in the red. China’s Shanghai Composite Index (SHCOMP) closed down -0.13%, and Japan’s Nikkei 225 Stock Index (NIK) closed down -1.06%.

China’s Shanghai Composite today erased early gains and closed lower as the country grapples with its worst outbreak in six months. This news mainly offset optimism over new stimulus measures for the country's hard-hit property sector. However, beleaguered property stocks climbed on the prospect of more government aid.

At the same time, Japan’s Nikkei 225 Stock Index closed lower today, weighed down by losses in the Transport, Railway & Bus, and Shipbuilding sectors. The Nikkei Volatility, which takes into account the implied volatility of Nikkei 225 options, closed down 6.45% and hit a new 1-month low of 20.31.

Pre-Market U.S. Stock Movers

Sonder Holdings Inc (SOND) slid over -2% in pre-market trading after Citi lowered the firm's price target on the stock to $3.50 from $4 post the Q3 results.

Okta Inc (OKTA) dropped about -1% in pre-market trading after Citi lowered the firm's price target on the stock to $65 from $98 and kept a neutral rating.

Dominion Energy Inc (D) rose around +3% in pre-market trading after Goldman Sachs upgraded the stock to neutral from sell with a price target of $69, down from $72.

Fulgent Genetics Inc (FLGT) slid about -3% in pre-market trading after Piper Sandler lowered the firm's price target on the stock to $65 from $70.

EQRx Inc (EQRX) dropped about -1% in pre-market trading, extending Friday's drop after Goldman Sachs and Jefferies downgraded the stock to neutral or equivalent ratings.

You can see more pre-market stock movershere

Today’s U.S. Earnings Spotlight: Monday - November 14th

British American Tobacco ADR (BTI), Mitsubishi UFJ Financial ADR (MUFG), Rosneft DRC (OJSCY), Sumitomo Mitsui Financial ADR (SMFG), Lonza Group AG (LZAGY), Fortescue Metals (FSUMF), Telstra Corporation ADR (TLSYY), Mizuho Financial ADR (MFG), Citic ADR (CTPCY), Tyson Foods (TSN), Nu Holdings (NU), China Resources Beer ADR (CRHKY), Trip.com ADR (TCOM), Legal & General Group Plc (LGGNY), Sonova Holding AG (SONVY), Surgutneftegaz ADR (SGTZY), Polyus ADR (OPYGY), Shaw B (SJR), Siemens Gamesa ADR (GCTAY), Brookfield Renewable (BEPC), Aecom Technology (ACM), Brambles ADR (BXBLY), Sonic Healthcare ADR (SKHHY), Ivanhoe Mines (IVPAF), Kepco ADR (KEP), ASX ADR (ASXFY), Koc Holdings AS (KHOLY), Admiral Group ADR (AMIGY), Dentsply (XRAY), Dlocal (DLO), Woori Financial (WF), KT (KT), Turquoise Hill Resources (TRQ), Nedbank Group Ltd (NDBKY), Spark New Zealand ADR (SPKKY), Allkem (OROCF), Ginkgo Bioworks (DNA), Grupo Simec ADR (SIM), Tower (TSEM), Knowbe4 (KNBE), Monday.Com (MNDY), Clear Secure (YOU), Shoals Technologies Group (SHLS), Azenta (AZTA), Roivant Sciences (ROIV), Ebara ADR (EBCOY), International Bancshares (IBOC), San Miguel ADR (SMGBY), Alumina Limited PK (AWCMY), Beijing Capital Airport ADR (BJCHY), J & J Snack Foods (JJSF), Thoughtworks Holding (TWKS), Highpeak Energy Acquisition (HPK), Autogrill ADR (ATGSY), Aperam PK (APEMY), NantKwest Inc (IBRX), iQIYI (IQ), Miniso (MNSO), Boral ADR (BOALY), Getty Images Holdings (GETY), Verano Holdings (VRNOF), Adams Diversified Equity Closed (ADX), HUTCHMED DRC (HCM), Eaton Vance Tax Managed Diversified (ETY), Semrush Holdings (SEMR), Semrush Holdings (SEMR), Banco Macro B ADR (BMA), Sims Metal Management Ltd PK (SMSMY), Embotelladora Andina (AKOa), Ast Spacemobile (ASTS), FREYR Battery (FREY), MAG Silver (MAG), Meridian (VIVO), FinVolution Group (FINV), K92 Mining (KNTNF), SFLoration Ltd (SFL), Altus Power (AMPS), P3 Health Partners (PIII), Sabine Royalty Trust (SBR), Oatly Group AB (OTLY), IONQ (IONQ), Africa Oil Corp (AOIFF), Africa Oil Corp (AOIFF), Adeia (ADEA), Seabridge Gold (SA).

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