CNBC Daily Open: Fed's reality check

This report is from today's CNBC Daily Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribe  here .

Markets start week lower
U.S. stocks started the shortened week lower on Tuesday as investors closely watched fourth-quarter earnings, while tracking an uptick in Treasury yields after a Federal Reserve official said the central bank's interest rate cutting cycle could be slower than what Wall Street expected. European stocks ended the session lower, with fashion brand Hugo Boss tumbling 9% after lower than expected earnings.

Slower pace of Fed cuts
Federal Reserve Governor Christopher Waller said there will be monetary policy loosening this year but the central bank could do it at a slower pace. "In many previous cycles ... the FOMC cut rates reactively and did so quickly and often by large amounts." For this cycle, he said, "I see no reason to move as quickly or cut as rapidly as in the past."

China's growth
Speaking at the at the World Economic Forum in Davos, Switzerland, Chinese Premier Li Qiang said China's economy grew by around 5.2% in 2023 — slightly better than the official target of around 5%. It comes as Beijing is set to release official GDP numbers on Wednesday. A Reuters poll also forecasts 5.2% growth for China in 2023. Premier Li also said innovations in technology shouldn't be used as means to contain or restrict other countries.

More Big Bank earnings
Goldman Sachs and Morgan Stanley reported earnings on Tuesday, wrapping up results for Wall Street's biggest six lenders. Morgan Stanley's fourth quarter revenue topped analysts' estimates but the bank warned of economic and