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Cobalt Outlook 2022: Rapid EV Growth to Drive Demand, Resilience in Prices

Click here to read the previous cobalt outlook.This time last year, cobalt market watchers were expecting demand from the electric vehicle (EV) sector to continue to thrive, supporting a higher price environment.Cobalt, a key element in lithium-ion batter

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2 years ago

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Click here to read the previous cobalt outlook.

This time last year, cobalt market watchers were expecting demand from the electric vehicle (EV) sector to continue to thrive, supporting a higher price environment.

Cobalt, a key element in lithium-ion batteries, experienced supply chain challenges due to the COVID-19 pandemic, with lockdowns and containment measures testing its resilience.

With the new year now in full swing, the Investing News Network (INN) reached out to cobalt experts to get more insight about the cobalt outlook for 2022.

Cobalt trends 2021: The year in review


Looking back at how prices performed in 2021, there’s little doubt that cobalt beat expectations, after a 2020 that had already seen prices rebound following years of decline.

“Price performance has certainly surprised to the upside this year but it reflects strong downstream demand, particularly from EVs, which have continued to outperform market expectations, and tight market conditions overall,” Harry Fisher of CRU told INN.

Cobalt kicked off 2021 on an uptrend, as investors turned their attention to the electric vehicle sector and battery metals.

Market conditions remained very strong during the first half and prices continued to rally through the fourth quarter with expectations they will finish the year more than twice where they started in January 2021.

“The cobalt market outperformed expectations in Q4, as the cobalt metal price rally sustained throughout the quarter ― although this was not altogether a surprise considering market fundamentals,” Greg Miller of Benchmark Mineral Intelligence told INN.

That means it wasn’t just the bullish outlook for battery demand that helped cobalt in 2021. The upswing in prices was underpinned by several converging factors, Miller explained, which included increased restocking from industrial sectors and the ongoing disruption to supply chains globally.

Additionally, surplus inventory held predominantly in the hands of traders, paired with limited metal production in China throughout the year ― which is the traditional counterweight to price rises ex-China ― were also factors pushing prices up.

Commenting on the biggest surprise of late 2021 in the cobalt market, the Benchmark Mineral Intelligence analyst said it was the extent to which the China and ex-China markets diverged.

“Prices in the Chinese domestic market failed to keep pace with other regions, in part due to negative sentiment over growing lithium-iron-phosphate (LFP) utilization, with refiners reporting that they were operating at a loss for much of the quarter,” he said.

The growing LFP cathode market in China was a topic of concern for many cobalt investors in 2021, as this type of cathode — which is also used in electric car batteries — doesn’t use cobalt. Cathodes containing cobalt include nickel-cobalt-manganese (NCM) and nickel-cobalt-aluminum (NCA).

Cobalt outlook 2022: Supply and demand


It has already been established many times before that the electric vehicle industry is a key driver for cobalt, with demand increasing this past year on the back of higher sales that materialized in key regions such as Europe.

“EVs remain the real driving force of the cobalt market and will continue to see substantial gains in 2022,” Fisher said.

As mentioned, this past year, worries among cobalt investors increased as the use of LFP cathodes picked up pace, with many speculating how much this could impact the cobalt space.

“I don’t think investors should be too concerned, as we see absolute cobalt demand continuing to increase throughout the demand,” Miller said. “Ultimately, we see structural deficits emerging in the cobalt market from 2025, so new technologies will be needed to bridge these supply shortfalls.”

Going forward, CRU also continues to see the battery market dominated by both NCM and LFP chemistries for EV applications.

“LFP has built market share in China through 2021 due to the popularity of mini EV models such as the Hongguang mini ― but NCM will hold ground for longer range, larger and higher performance vehicles,” Fisher said. “We expect that cobalt demand will remain robust for this reason despite LFP’s recent performance.”


cobalt chemical use in electric vehicles


In 2022, Benchmark Mineral Intelligence expects cobalt demand from the battery sector to grow by over 30 percent, supported by new EV model launches and governmental legislation.

Cobalt is not only used in electric vehicle batteries, and demand from other segments is looking to improve in the next 12 months.

“Demand from other segments is also expected to grow, particularly from the superalloy industry on improved prospects for global aviation,” Miller said.

CRU is also expecting other demand sectors to recover in 2022.

“Aerospace is showing some very early signs of recovery and will continue to see gradual improvements subject to new concerns around the omicron variant, which could slow international travel once again,” Fisher said.

In terms of supply, output is expected to increase once again in 2022.

“(This will) support the rapid demand growth expected in the mid- to long-term,” Fisher said. “Growth will come from the Democratic Republic of Congo (DRC) as well as Indonesia as two of the HPAL facilities continue their ramp up and further new capacity is commissioned.”

Output from the DRC, the top producing country, is expected to come from Glencore's (LSE:GLEN,OTC Pink:GLCNF) Mutanda mine restart, increased output at Katanga and expansions at Tenke Fungurume.

As 2021 came to a close, many market watchers were paying particular attention to contract negotiations for cobalt ― which sets the stage for market developments into the new year.

“Contract negotiations have now been finalized for 2022 and demand has been very strong with many sellers negotiating Premia, compared to previous years where flat prices or discounts were more common,” Fisher said.

A key trend seen in the space was longer term contracts on the back of rising prices.

“Long term contracts will remain king in the cobalt market next year,” Miller said. “Those who eschewed long-term contracts in late 2020, in the hope of securing a better deal in the spot market in 2021, struggled to secure material and often had to pay a premium to do so.”

For junior miners, 2022 will be a year when challenges to secure investment from capital markets will remain.

“It’s a crowded field, with much of the focus right now on the lithium market,” Miller said.

All in all, Benchmark Mineral Intelligence is expecting the market to transition into a slight surplus in 2022. Meanwhile, CRU is forecasting the market will be finely balanced in 2022 compared to the relatively wide deficit in 2021.

“However, risks are weighted towards a deficit developing as EV demand continues to grow rapidly and market tightness persists due to supply chain constraints,” Fisher said.

In fact, according to S&P Global data, in 2021, monthly cobalt exports from the DRC are on average 23.2 percent lower than pre-COVID-19 levels, reflecting inefficiencies across land transport and port operations compounded by global shipping delays.

“To date, most of the impact of COVID-19 on cobalt supply has been felt by supply-chain logistics rather than mining operations,” Alice Yu, senior analyst at S&P Global Market Intelligence, said. “Early data suggests the omicron variant spreads faster and, though symptoms appear to be mild, vaccines are less effective against it, which presents potential risks of further lockdowns and impacts to mine operations.”

There are also renewed concerns over potential disruptions at the cobalt receiving end, with lockdowns in parts of China’s Ningbo city in Zhejiang province, home to one of the world’s largest container ports.

Cobalt outlook 2022: What’s ahead for prices


In 2022, prices are expected to remain strong, and this has been further supported by recent annual contract negotiations, according to CRU’s Fisher.

“The upwards trend is likely to slow as some new supply comes online to bring the market closer to balance relative to 2021, and relieve some tightness,” he said. “However, ongoing supply chain and container shipping constraints may maintain market tightness and see prices move higher.”

Meanwhile, Miller expects prices to soften from Q4 levels next year, as the market transitions back into a slight surplus in light of increased supply out of the DRC and the commissioning of new projects in Indonesia.

“However, we are unlikely to see prices collapse like they did in 2018/19, as the market is set to remain well supported by strong demand side fundamentals,” Miller said. “Moreover, the emergence of the omicron variant of COVID-19 threatens to delay the easing of logistics bottlenecks, which could provide further support to prices.”

For her part, Yu said the cobalt market has been critically affected by logistical challenges, and the emergence of omicron means supply constraints will likely continue to dominate cobalt prices in 2022.

“If prolonged, those constraints could support elevated prices and remind battery-makers of the concentration risks in cobalt supply, potentially speeding up cobalt thrifting in batteries,” the analyst added.

Cobalt outlook 2022: Key factors to watch


For Miller, an important trend to watch next year is how demand for cobalt metal from the battery industry impacts pricing.

“We are seeing increased metal consumption from ESG-conscious end consumers in the battery supply chain, driving increased competition for the limited available supply,” he added.

Commenting on what factors he will be paying attention to in 2022, Fisher said EV sales will continue to be a key catalyst. On the demand side, he will also be watching the aerospace sector recovery, which will be subject to COVID-19 travel restrictions and the impact of omicron.

“Supply chain and container shipping constraints slowing cobalt hydroxide volumes from the DRC to China” will be another factor to pay attention to, Fisher said.

On the supply-side, ongoing ramp up of HPALs in Indonesia and any announcements of further expansions ― as well as Mutanda’s restart and other supply additions in the DRC ― should be some of the catalysts to watch out for in 2022, according to the analyst.

Don’t forget to follow us @INN_Resource for real-time news updates.

Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

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Shakira’s net worth

After 12 albums, a tax evasion case, and now a towering bronze idol sculpted in her image, how much is Shakira worth more than 4 decades into her care…

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6 hours ago

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March 14, 2024

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Shakira’s considerable net worth is no surprise, given her massive popularity in Latin America, the U.S., and elsewhere. 

In fact, the belly-dancing contralto queen is the second-wealthiest Latin-America-born pop singer of all time after Gloria Estefan. (Interestingly, Estefan actually helped a young Shakira translate her breakout album “Laundry Service” into English, hugely propelling her stateside success.)

Since releasing her first record at age 13, Shakira has spent decades recording albums in both Spanish and English and performing all over the world. Over the course of her 40+ year career, she helped thrust Latin pop music into the American mainstream, paving the way for the subsequent success of massively popular modern acts like Karol G and Bad Bunny.

In late 2023, a 21-foot-tall bronze sculpture of Shakira, the barefoot belly dancer of Barranquilla, was unveiled at the city's waterfront. The statue was commissioned by the city's former mayor and other leadership.

Photo by STR/AFP via Getty Images

In December 2023, a 21-foot-tall beachside bronze statue of the “Hips Don’t Lie” singer was unveiled in her Colombian hometown of Barranquilla, making her a permanent fixture in the city’s skyline and cementing her legacy as one of Latin America’s most influential entertainers.

After 12 albums, a plethora of film and television appearances, a highly publicized tax evasion case, and now a towering bronze idol sculpted in her image, how much is Shakira worth? What does her income look like? And how does she spend her money?

Related: Dwayne 'The Rock' Johnson's net worth: How the new TKO Board Member built his wealth from $7

How much is Shakira worth?

In late 2023, Spanish sports and lifestyle publication Marca reported Shakira’s net worth at $400 million, citing Forbes as the figure’s source (although Forbes’ profile page for Shakira does not list a net worth — and didn’t when that article was published).

Most other sources list the singer’s wealth at an estimated $300 million, and almost all of these point to Celebrity Net Worth — a popular but dubious celebrity wealth estimation site — as the source for the figure.

A $300 million net worth would make Shakira the third-richest Latina pop star after Gloria Estefan ($500 million) and Jennifer Lopez ($400 million), and the second-richest Latin-America-born pop singer after Estefan (JLo is Puerto Rican but was born in New York).

Shakira’s income: How much does she make annually?

Entertainers like Shakira don’t have predictable paychecks like ordinary salaried professionals. Instead, annual take-home earnings vary quite a bit depending on each year’s album sales, royalties, film and television appearances, streaming revenue, and other sources of income. As one might expect, Shakira’s earnings have fluctuated quite a bit over the years.

From June 2018 to June 2019, for instance, Shakira was the 10th highest-earning female musician, grossing $35 million, according to Forbes. This wasn’t her first time gracing the top 10, though — back in 2012, she also landed the #10 spot, bringing in $20 million, according to Billboard.

In 2023, Billboard listed Shakira as the 16th-highest-grossing Latin artist of all time.

Shakira performed alongside producer Bizarrap during the 2023 Latin Grammy Awards Gala in Seville.

Photo By Maria Jose Lopez/Europa Press via Getty Images

How much does Shakira make from her concerts and tours?

A large part of Shakira’s wealth comes from her world tours, during which she sometimes sells out massive stadiums and arenas full of passionate fans eager to see her dance and sing live.

According to a 2020 report by Pollstar, she sold over 2.7 million tickets across 190 shows that grossed over $189 million between 2000 and 2020. This landed her the 19th spot on a list of female musicians ranked by touring revenue during that period. In 2023, Billboard reported a more modest touring revenue figure of $108.1 million across 120 shows.

In 2003, Shakira reportedly generated over $4 million from a single show on Valentine’s Day at Foro Sol in Mexico City. 15 years later, in 2018, Shakira grossed around $76.5 million from her El Dorado World Tour, according to Touring Data.

Related: RuPaul's net worth: Everything to know about the cultural icon and force behind 'Drag Race'

How much has Shakira made from her album sales?

According to a 2023 profile in Variety, Shakira has sold over 100 million records throughout her career. “Laundry Service,” the pop icon’s fifth studio album, was her most successful, selling over 13 million copies worldwide, according to TheRichest.

Exactly how much money Shakira has taken home from her album sales is unclear, but in 2008, it was widely reported that she signed a 10-year contract with LiveNation to the tune of between $70 and $100 million to release her subsequent albums and manage her tours.

Shakira and JLo co-headlined the 2020 Super Bowl Halftime Show in Florida.

Photo by Kevin Winter/Getty Images)

How much did Shakira make from her Super Bowl and World Cup performances?

Shakira co-wrote one of her biggest hits, “Waka Waka (This Time for Africa),” after FIFA selected her to create the official anthem for the 2010 World Cup in South Africa. She performed the song, along with several of her existing fan-favorite tracks, during the event’s opening ceremonies. TheThings reported in 2023 that the song generated $1.4 million in revenue, citing Popnable for the figure.

A decade later, 2020’s Superbowl halftime show featured Shakira and Jennifer Lopez as co-headliners with guest performances by Bad Bunny and J Balvin. The 14-minute performance was widely praised as a high-energy celebration of Latin music and dance, but as is typical for Super Bowl shows, neither Shakira nor JLo was compensated beyond expenses and production costs.

The exposure value that comes with performing in the Super Bowl Halftime Show, though, is significant. It is typically the most-watched television event in the U.S. each year, and in 2020, a 30-second Super Bowl ad spot cost between $5 and $6 million.

How much did Shakira make as a coach on “The Voice?”

Shakira served as a team coach on the popular singing competition program “The Voice” during the show’s fourth and sixth seasons. On the show, celebrity musicians coach up-and-coming amateurs in a team-based competition that eventually results in a single winner. In 2012, The Hollywood Reporter wrote that Shakira’s salary as a coach on “The Voice” was $12 million.

Related: John Cena's net worth: The wrestler-turned-actor's investments, businesses, and more

How does Shakira spend her money?

Shakira doesn’t just make a lot of money — she spends it, too. Like many wealthy entertainers, she’s purchased her share of luxuries, but Barranquilla’s barefoot belly dancer is also a prolific philanthropist, having donated tens of millions to charitable causes throughout her career.

Private island

Back in 2006, she teamed up with Roger Waters of Pink Floyd fame and Spanish singer Alejandro Sanz to purchase Bonds Cay, a 550-acre island in the Bahamas, which was listed for $16 million at the time.

Along with her two partners in the purchase, Shakira planned to develop the island to feature housing, hotels, and an artists’ retreat designed to host a revolving cast of artists-in-residence. This plan didn’t come to fruition, though, and as of this article’s last update, the island was once again for sale on Vladi Private Islands.

Real estate and vehicles

Like most wealthy celebs, Shakira’s portfolio of high-end playthings also features an array of luxury properties and vehicles, including a home in Barcelona, a villa in Cyprus, a Miami mansion, and a rotating cast of Mercedes-Benz vehicles.

Philanthropy and charity

Shakira doesn’t just spend her massive wealth on herself; the “Queen of Latin Music” is also a dedicated philanthropist and regularly donates portions of her earnings to the Fundación Pies Descalzos, or “Barefoot Foundation,” a charity she founded in 1997 to “improve the education and social development of children in Colombia, which has suffered decades of conflict.” The foundation focuses on providing meals for children and building and improving educational infrastructure in Shakira’s hometown of Barranquilla as well as four other Colombian communities.

In addition to her efforts with the Fundación Pies Descalzos, Shakira has made a number of other notable donations over the years. In 2007, she diverted a whopping $40 million of her wealth to help rebuild community infrastructure in Peru and Nicaragua in the wake of a devastating 8.0 magnitude earthquake. Later, during the COVID-19 pandemic in 2020, Shakira donated a large supply of N95 masks for healthcare workers and ventilators for hospital patients to her hometown of Barranquilla.

Back in 2010, the UN honored Shakira with a medal to recognize her dedication to social justice, at which time the Director General of the International Labour Organization described her as a “true ambassador for children and young people.”

On November 20, 2023 (which was supposed to be her first day of trial), Shakira reached a deal with the prosecution that resulted in a three-year suspended sentence and around $8 million in fines.

Photo by Adria Puig/Anadolu via Getty Images

Shakira’s tax fraud scandal: How much did she pay?

In 2018, prosecutors in Spain initiated a tax evasion case against Shakira, alleging she lived primarily in Spain from 2012 to 2014 and therefore failed to pay around $14.4 million in taxes to the Spanish government. Spanish law requires anyone who is “domiciled” (i.e., living primarily) in Spain for more than half of the year to pay income taxes.

During the period in question, Shakira listed the Bahamas as her primary residence but did spend some time in Spain, as she was dating Gerard Piqué, a professional footballer and Spanish citizen. The couple’s first son, Milan, was also born in Barcelona during this period. 

Shakira maintained that she spent far fewer than 183 days per year in Spain during each of the years in question. In an interview with Elle Magazine, the pop star opined that “Spanish tax authorities saw that I was dating a Spanish citizen and started to salivate. It's clear they wanted to go after that money no matter what."

Prosecutors in the case sought a fine of almost $26 million and a possible eight-year prison stint, but in November of 2023, Shakira took a deal to close the case, accepting a fine of around $8 million and a three-year suspended sentence to avoid going to trial. In reference to her decision to take the deal, Shakira stated, "While I was determined to defend my innocence in a trial that my lawyers were confident would have ruled in my favour [had the trial proceeded], I have made the decision to finally resolve this matter with the best interest of my kids at heart who do not want to see their mom sacrifice her personal well-being in this fight."

How much did the Shakira statue in Barranquilla cost?

In late 2023, a 21-foot-tall bronze likeness of Shakira was unveiled on a waterfront promenade in Barranquilla. The city’s then-mayor, Jaime Pumarejo, commissioned Colombian sculptor Yino Márquez to create the statue of the city’s treasured pop icon, along with a sculpture of the city’s coat of arms.

According to the New York Times, the two sculptures cost the city the equivalent of around $180,000. A plaque at the statue’s base reads, “A heart that composes, hips that don’t lie, an unmatched talent, a voice that moves the masses and bare feet that march for the good of children and humanity.” 

Related: Taylor Swift net worth: The most successful entertainer joins the billionaire's club

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Delta Air Lines adds a new route travelers have been asking for

The new Delta seasonal flight to the popular destination will run daily on a Boeing 767-300.

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6 hours ago

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March 14, 2024

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Those who have tried to book a flight from North America to Europe in the summer of 2023 know just how high travel demand to the continent has spiked.

At 2.93 billion, visitors to the countries making up the European Union had finally reached pre-pandemic levels last year while North Americans in particular were booking trips to both large metropolises such as Paris and Milan as well as smaller cities growing increasingly popular among tourists.

Related: A popular European city is introducing the highest 'tourist tax' yet

As a result, U.S.-based airlines have been re-evaluating their networks to add more direct routes to smaller European destinations that most travelers would have previously needed to reach by train or transfer flight with a local airline.

The new flight will take place on a Boeing 767-300.

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Delta Air Lines: ‘Glad to offer customers increased choice…’

By the end of March, Delta Air Lines  (DAL)  will be restarting its route between New York’s JFK and Marco Polo International Airport in Venice as well as launching two new flights to Venice from Atlanta. One will start running this month while the other will be added during peak demand in the summer.

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“As one of the most beautiful cities in the world, Venice is hugely popular with U.S. travelers, and our flights bring valuable tourism and trade opportunities to the city and the region as well as unrivalled opportunities for Venetians looking to explore destinations across the Americas,” Delta’s SVP for Europe Matteo Curcio said in a statement. “We’re glad to offer customers increased choice this summer with flights from New York and additional service from Atlanta.”

The JFK-Venice flight will run on a Boeing 767-300  (BA)  and have 216 seats including higher classes such as Delta One, Delta Premium Select and Delta Comfort Plus.

Delta offers these features on the new flight

Both the New York and Atlanta flights are seasonal routes that will be pulled out of service in October. Both will run daily while the first route will depart New York at 8:55 p.m. and arrive in Venice at 10:15 a.m. local time on the way there, while leaving Venice at 12:15 p.m. to arrive at JFK at 5:05 p.m. on the way back.

According to Delta, this will bring its service to 17 flights from different U.S. cities to Venice during the peak summer period. As with most Delta flights at this point, passengers in all fare classes will have access to free Wi-Fi during the flight.

Those flying in Delta’s highest class or with access through airline status or a credit card will also be able to use the new Delta lounge that is part of the airline’s $12 billion terminal renovation and is slated to open to travelers in the coming months. The space will take up more than 40,000 square feet and have an outdoor terrace.

“Delta One customers can stretch out in a lie-flat seat and enjoy premium amenities like plush bedding made from recycled plastic bottles, more beverage options, and a seasonal chef-curated four-course meal,” Delta said of the new route. “[…] All customers can enjoy a wide selection of in-flight entertainment options and stay connected with Wi-Fi and enjoy free mobile messaging.”

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Stock Market Today: Stocks turn lower as factory inflation spikes, retail sales miss target

Stocks will navigate the last major data releases prior to next week’s Fed rate meeting in Washington.

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8 hours ago

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March 14, 2024

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Check back for updates throughout the trading day

U.S. stocks edged lower Thursday following a trio of key economic releases that have added to the current inflation puzzle as investors shift focus to the Federal Reserve's March policy meeting next week in Washington.

Updated at 9:59 AM EDT

Red start

Stocks are now falling sharply following the PPI inflation data and retail sales miss, with the S&P 500 marked 18 points lower, or 0.36%, in the opening half hour of trading.

The Dow, meanwhile, was marked 92 points lower while the Nasdaq slipped 67 points.

Treasury yields are also on the move, with 2-year notes rising 5 basis points on the session to 4.679% and 10-year notes pegged 7 basis points higher at 4.271%.

Updated at 9:44 AM EDT

Under Water

Under Armour  (UAA)  shares slumped firmly lower in early trading following the sportswear group's decision to bring back founder Kevin Plank as CEO, replacing the outgoing Stephanie Linnartz.

Plank, who founded Under Armour in 1996, left the group in May of 2021 just weeks before the group revealed that it was co-operating with investigations from both the Securities and Exchange Commission and the U.S. Department of Justice into the company's revenue recognition accounting.

Under Armour shares were marked 10.6% lower in early trading to change hands at $7.21 each.

Source: Under Armour Investor Relations

Updated at 9:22 AM EDT

Steely resolve

U.S. Steel  (X)  shares extended their two-day decline Thursday, falling 5.75% in pre-market trading following multiple reports that suggest President Joe Biden will push to prevent Japan's Nippon Steel from buying the Pittsburgh-based group.

Both Reuters and the Associated Press have said Biden will express his views to Prime Minister Kishida Yuko ahead of a planned State Visit next month at the White House. 

Related: US Steel soars on $15 billion Nippon Steel takeover; United Steelworkers slams deal

Updated at 8:52 AM EDT

Clear as mud

Retail sales rebounded last month, but the overall tally of $700.7 billion missed Street forecasts and suggests the recent uptick in inflation could be holding back discretionary spending.

A separate reading of factory inflation, meanwhile, showed prices spiking by 1.6%, on the year, and 0.6% on the month, amid a jump in goods prices.

U.S. stocks held earlier gains following the data release, with futures tied to the S&P 500 indicating an opening bell gain of 10 points, while the Dow was called 140 points higher. The Nasdaq, meanwhile, is looking at a more modest 40 point gain.

Benchmark 10-year Treasury note yields edged 3 basis points lower to 4.213% while two-year notes were little-changed at 4.626%.

Stock Market Today

Stocks finished lower last night, with the S&P 500 ending modestly in the red and the Nasdaq falling around 0.5%. The declines came amid an uptick in Treasury yields tied to concern that inflation pressures have failed to ease over the opening months of the year.

A better-than-expected auction of $22 billion in 30-year bonds, drawing the strongest overall demand since last June, steadied the overall market, but stocks still slipped into the close with an eye towards today's dataset.

The Commerce Department will publish its February reading of factory-gate inflation at 8:30 am Eastern Time. Analysts are expecting a slowdown in the key core reading, which feeds into the Fed's favored PCE price index.

Retail sales figures for the month are also set for an 8:30 am release as investors search for clues on consumer strength, tied to a resilient job market. Those factors could give the Fed more justification to wait until the summer months to begin the first of its three projected rate cuts.

"The case for a gradual but sustained slowdown in growth in consumers’ spending from 2023’s robust pace is persuasive," said Ian Shepherdson of Pantheon Macroeconomics. 

"Most households have run down the excess savings accumulated during the pandemic, while the cost of credit has jumped and last year’s plunge in home sales has depressed demand housing-related retail items like furniture and appliances," he added.

Benchmark 10-year Treasury yields are holding steady at 4.196% heading into the start of the New York trading session, while 2-year notes were pegged at 4.628%.

With Fed officials in a quiet period, requiring no public comments ahead of next week's meeting in Washington, the U.S. dollar index is trading in a narrow range against its global peers and was last marked 0.06% higher at 102.852.

On Wall Street, futures tied to the S&P 500 are indicating an opening bell gain of around 19 points, with the Dow Jones Industrial Average indicating a 140-point advance.

The tech-focused Nasdaq, which is up 7.77% for the year, is priced for a gain of around 95 points, with Tesla  (TSLA)  once again sliding into the red after ending the Wednesday session at a 10-month low.

In Europe, the regionwide Stoxx 600 was marked 0.35% higher in early Frankfurt trading, while Britain's FTSE 100 slipped 0.09% in London.

Overnight in Asia, the Nikkei 225 gained 0.29% as investors looked to a key series of wage negotiation figures from key unions that are likely to see the biggest year-on-year pay increases in three decades.

The broader MSCI ex-Japan benchmark, meanwhile, rose 0.18% into the close of trading. 

Related: Veteran fund manager picks favorite stocks for 2024

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