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Coffee With Greta: Key Data Week


DJIA Futures: -159 (-0.4%)

SPX Futures: -20 (-0.4%)

NASDAQ Futures: -93 (-0.5%)

Good morning friends!

Futures are slipping, extending Friday’s reversal. 

Let’s get right to it!

Inflation Week

Traders are awaiting key data for the Fed this week with new inflation numbers set to be released. 

The February CPI will be released Tuesday morning ahead of the market open. 

That will be followed by February retail sales and the PPI on Thursday morning. 

This is the final inflation data that will be released ahead of the Fed’s next policy meeting next week. 

CME Group’s FedWatch Tool shows no expectations for a rate change at that meeting. 

But the decision will come with an updated Summary of Economic Projections which should give more clues on when the bank plans to begin rate cuts this year. 

Traders are currently betting on the first cut at the June meeting. 

Bitcoin Hits Record High

Bitcoin is trading in record territory this morning after Britain’s Financial Conduct Authority said it would allow exchanges to list crypto-linked exchange-traded products. 

The coin hit a high of $72,211.51 earlier in the morning, a fresh all-time high.

The London Stock Exchange said it would begin accepting applications for crypto exchange traded notes, or ETNs.

The U.K. allows only institutional investors, not retail investors, to buy crypto-linked ETNs or derivatives.

The ETNs are different from the spot bitcoin ETFs approved in the U.S.

ETNs are an unsecured debt security issued by a bank and linked to a market index or other benchmark that promises to pay out the full value at maturity.

Analysts say the move will lead to increased institutional investment in bitcoin and other cryptocurrencies which will drive the price of bitcoin higher. 

Crypto-linked stocks are rallying alongside bitcoin with Coinbase (COIN) up 5.9% ahead of the open, Marathon Digital (MARA) rising 4.3%, and MicroStrategy (MSTR) jumping 9.3%.

Oil Extends Losses

Oil prices are starting the new week lower, extending last week’s losses. 

West Texas Intermediate crude futures are down 0.4% at under $78 bbl while Brent crude futures are down 0.4% at under $82 bbl. 

Those contracts dropped 2.45% and 1.75% respectively last week amid weak demand in China and comments from the International Energy Agency that the market should be well supplied this year. 

The IEA and OPEC will release updated monthly supply reports later this week. 

The upcoming inflation data will also be key for the oil market as investors await rate cuts that typically stimulate economic growth and fuels higher crude demand. 

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