[Platinum Insights] (6.23.23)

Good morning. 

US stock futures declined this morning after the major averages ended mixed during Thursday’s regular session, as investors continued to assess the economic and monetary policy outlook. 

In a testimony before Congress, Federal Reserve Chair Jerome Powell emphasized that FOMC members are currently in a broad consensus that interest rates must continue to rise. “The latest data aggravated fears about a potential recession, which has further dampened risk appetite,” a note from Deutsche Bank said. 

Treasury Secretary Janet Yellen said the odds of the U.S. tipping into a recession has come down and suggested a slowdown in consumer spending may be required to conclude the mission of reining-in inflation. 

Global equity funds suffered substantial outflows during the seven days to June 21 amid concerns over borrowing costs staying higher for longer as the European Central Bank raised interest rates and the Federal Reserve signaled more hikes. The U.S. and European equity funds witnessed outflows of $16.47 billion and $1.81 billion, respectively, while investors pumped about $2.6 billion into Asian funds. Meanwhile, global bond funds extended their inflows streak to a 14th straight week, with about $4.07 billion flowing in. 

S&P Global’s Purchasing Managers’ Index for both U.S. manufacturing and services activity will be on investors’ radar later in the day and will provide more clues on the strength of the economy. Investors will also monitor comments from St. Louis Fed President James Bullard, Atlanta Fed President Raphael Bostic and Cleveland Fed’s Loretta Mester. 

WTI crude futures fell below $69 per barrel. Gold held near $1,910 an ounce while the yield on the US 10-year Treasury note was trading around 3.8%. 

See you later today on the Platinum ZOOM call at 11:30 AM central time! Have a great weekend