CPI Higher Than Anticipated

STOCK INDEX FUTURES

Stock index futures were higher in the overnight trade due to better than expected corporate earnings reports.

However, prices quickly declined on news that the September consumer price index increased 0.4% when up 0.2% was expected.

On an annualized basis the consumer price index was up 8.2% when a gain of 8.1% was anticipated.

Jobless claims in the week ended October 8 were 228,000 when 225,000 were predicted.

CURRENCY FUTURES

The U.S. dollar index was lower in the overnight trade but reverse when the U.S. consumer price index was released.

Germany’s consumer prices were 10.9% higher year-on-year in September.

The British pound advanced on reports that the U.K.  government may reverse parts of its tax-cutting proposals.

The Japanese yen fell to a new 24-year low against the U.S. dollar after Bank of Japan Governor Haruhiko Kuroda pledged to maintain monetary easing to support the Japanese economy.

INTEREST RATE MARKET FUTURES

Yesterday’s release of the of the minutes of the Federal Reserve’s September 21 policy meeting showed policymakers were committed to pushing rates to a restrictive level until there were clear signs that inflation was easing.

Futures came under pressure when the consumer price index report was reported.

Raphael Bostic of the Federal Reserve will speak at 12:00.

The Treasury will auction 30-year bonds today.

According to financial futures markets, there is a 98.0% probability that the Federal Open Market Committee will increase its fed funds rate by 75 basis points at the November 2 policy meeting and a 2.0% probability that the rate will be hiked by 100 basis points.

 

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