From Nasdaq:

Stock index futures are down this morning as central bankers push back against market expectations for interest rate cuts, with losses accelerating as bond yields rose further after U.S. Dec retail sales rose more than expected. Global equities are also under pressure after disappointing Chinese economic news knocked the Shanghai Composite to a 3-1/2 year low.

U.S. Dec retail sales rose stronger than expected, and the U.S. Dec import price index ex-petroleum was weaker than expected. The market is discounting the chances for a rate cut at the next FOMC meeting on Jan 30-31. Overseas stock markets are lower, with the Euro Stoxx 50 also dropping to a 1-1/2 month low today and pushing European government bond yields higher.

European stocks tumbled today on fresh concern about China’s economy after the Shanghai Composite sold off to a 3-1/2 year low. ECB President Lagarde said policymakers need more evidence before they can be sure that consumer prices are under control. UK Dec CPI unexpectedly ticked up, and swaps are pricing in the chances for a rate cut by the ECB at its next meeting on January 25.

China’s Shanghai Composite Index today sank to a 3-1/2 year low after a slew of disappointing economic news, including lower than expected Q4 GDP growth, a slump in home prices, and an unexpected increase in the jobless rate for the first time in 5 months. The news sent stocks tumbling and led to concerns about reduced demand for Japanese goods.

In pre-market trading, Tesla, Morgan Stanley, and Interactive Brokers are down, while Polaris and Nutanix climbed. U.S.-listed Chinese stocks are falling in pre-market trading after the disappointing economic news from China. Numerous stocks are experiencing changes after various analysts have either downgraded or upgraded them.

Earnings Reports for today include Alcoa Corp, Charles Schwab Corp, Citizens Financial Group Inc, Discover Financial Services, Kinder Morgan Inc, Prologis Inc, Synovus Financial Corp, US Bancorp, and Wintrust Financial Corp.



Read more: Markets Today: Stocks Fall as Central Bankers Push Back on Rate Cut Expectations