Consumer Credit Report Later Today
STOCK INDEX FUTURES
Stock index futures are mixed to higher.
The 2:00 central time November consumer credit report is expected to show a $9.5 billion increase.
The fundamentals and technicals remain supportive to stock index futures longer term despite recent talk of a potentially less dovish Federal Reserve this year.
The U.S. dollar index is a little lower.
Lower prices are likely for the U.S. dollar longer term.
German industrial orders increased less than expected in November as demand weakened. Industrial orders were up by 0.3% month-to-month on a seasonally and calendar adjusted basis when analysts had forecast a gain of 1.0%.
The economic sentiment indicator in the euro area improved to 96.4 in December 2023, which is up from the revised 94.0 in the previous month.
German exports increased by 3.7% in November compared with the previous month. This compares to the forecast of a 0.3% increase.
The annual inflation rate in Switzerland increased to 1.7% in December 2023 from 1.4% in the previous month and above market predictions of 1.5%.
INTEREST RATE MARKET FUTURES
The yield on the U.S. 10-year Treasury note advanced to above 4.06%, holding at levels not seen since the middle of December.
Raphael Bostic of the Federal Reserve will speak at 11:30.
Traders continue to believe the Fed will cut interest rates this year but not at the January meeting.
Financial futures markets are predicting there is a 5.0% probability that the Federal Open Market Committee will reduce its fed funds rate by 25 points at its January 31, 2024 policy meeting and a 95% probability of no change.
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