Highlights
Markets remain transfixed by the war in the Middle East with US military officials briefing reporters at 8 am ET about the intensifying US and Israeli attacks on Iran. Oil prices have come off their highs but remain elevated as all watch to see whether shipping can resume its flow through the Strait of Hormuz after President Trump's pledge to ensure it. Markets are also on alert to see how much damage Iran can inflict on oil facilities around the Persian Gulf. Reports that a missile fired from Iran heading toward Turkish airspace had been shot down raised the prospect of NATO joining the US-led action against Iran.
Oil prices appear likely to remain high, with negative fallout for inflation and the global economy. Bond yields continue to rise on inflation fears. Equity markets and risk assets generally have stabilized and appear less concerned about fallout from the war. Stocks got a lift from a report in The New York Times that Iranian representatives had reached out to the U.S. on the second day of the latest conflict offering to discuss terms for ending the war.
In economic data, the main event is the ISM services report due at 10 am ET. Expectations call for a relatively flat showing at 53.6 in February versus 53.8 in January.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.