Bank Earnings Support SIF’s


Recent strength in stock index futures was primarily due to prospects of a less hawkish Federal Reserve, although some pressure developed yesterday due to the larger than expected increase in the September consumer price index. 

Better than anticipated earnings in the banking sector supported futures today. 

Electronic Quote Board

September import prices increased 0.1% when up 0.5% was expected.  

The 9:00 central time October consumer sentiment index is predicted to be 67.5. 

The fundamental and technical factors are becoming more supportive. 


Yesterday’s bullish increase in the consumer price index and buy stop activity took the U.S. dollar higher, after a two-week downtrend.   

However, the greenback is lower today.  

So where is the flight to quality flow of funds into the U.S. dollar that is evident in other safe-haven vehicles, such as the interest rate market futures, gold and silver? 

In the last few days there appears to be only a limited flight-to-quality flow of funds into the greenback.  

Euro zone industrial production increased more than expected in August. The European Union’s statistics office said industrial production in the 20 countries sharing the euro currency increased  0.6% month-on-month in August when economists expected a 0.1% monthly increase. 


The escalation of the war in the Middle East prompted renewed flight to quality flows, offsetting the recent bearish influence of higher than expected producer and consumer price index data. 

Patrick Harker of the Federal Reserve will speak at 8:00. 

Recent dovish comments from Federal Reserve officials reduced expectations of another interest rate hike this year. 

This week’s larger than estimated increase in producer price and consumer price indexes only had a temporary impact on Fed policy expectations. 

Financial futures markets are now predicting there is a 93% probability that the Federal Open Market Committee will keep its fed funds rate unchanged and only a 7% probability of a 25 basis point increase at its November 1 policy meeting.   

The Federal Reserve’s target range for the fed funds rate currently is 5.25% to 5.50%.  


Interested in more futures markets?  Explore our Market Dashboards here.

Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.

ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.                  

A subsidiary of Archer Daniels Midland Company.

© 2021 ADM Investor Services International Limited.

Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

Latest News & Market Commentary

Explore the latest edition of The Ghost in the Machine

Explore Now