Corporate Earnings Support SIF’s

STOCK INDEX FUTURES

Stock index futures are higher due to better than expected corporate earnings reports.

The 8:45 central time October services Purchasing Managers’ Index is anticipated to be 49.4.

The October Richmond Federal Reserve manufacturing index will be released at 9:00. The September figure was 5.

CURRENCY FUTURES

The U.S. dollar is higher after briefly falling to a one-month low in the overnight trade. Weak economic data in the euro zone pressured the euro currency and supported the greenback.

A survey showed euro zone business activity took a surprise turn for the worse in October, suggesting the bloc may slip into a recession.

The HCOB euro zone composite Purchasing Managers’ Index declined to 46.5 in October 2023, which is down from September’s 47.2 and falling short of the market consensus of 47.4. This latest reading is the fifth consecutive month of falling business activity and the steepest drop since November 2020.

There has been only a limited flight-to-quality flow of funds into the greenback, which is a sign of longer-term weakness.

U.K. businesses reported another decline in activity this month. The “flash” preliminary reading of the S&P Global U.K. Purchasing Managers’ Index for the services sector fell in October to 49.2 from 49.3 in September, which is the lowest reading since January. Economists predicted an unchanged reading.

The au Jibun Bank Japan Composite Purchasing Managers’ Index declined to 49.9 in October 2023 from 52.1 in September.

INTEREST RATE MARKET FUTURES

Futures are lower with virtually no flight to quality buying recently in light of the conflict in the Middle East, which is surprising and a sign weakness.

Some analysts believe the underperforming futures market can be explained by concerns about increasing government offerings of Treasury issues to cover widening deficits.

The Treasury will auction two-year notes today.

Financial futures markets are now predicting there is a 99% probability that the Federal Open Market Committee will keep its fed funds rate unchanged at its November 1 policy meeting.

 

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