December CPI Revised Lower


Stock index futures quickly advanced when the revised December U.S. consumer price index report showed an increase of 0.2%, which compares to the previously reported 0.3% advance. The December core consumer price index was up 0.3% and was unchanged.

The fundamentals and technicals remain supportive to stock index futures.


The U.S. dollar index was a little higher in the overnight trade but fell when the December consumer price index was revised lower to up 0.2%.

Interest rate differentials remain supportive to the greenback.

The Bank of France Governor Francois Villeroy de Galhau said the European Central Bank will likely lower interest rates in 2024 as the pace of price increases eases toward 2.0% by next year. He said, “We will probably cut rates this year because we are making progress against inflation.”


Futures were mixed in the overnight trade but quickly advanced when the revised December consumer price index report was released.

Yesterday Federal Reserve Bank of Richmond President Thomas Barkin reiterated that policymakers have time to be patient about the timing of interest rate cuts.

Dallas Federal Reserve President Lorie Logan will speak at 12:30 central time.

Financial futures markets are predicting there is a 20% probability that the Federal Open Market Committee will lower its fed funds rate by 25 basis points at the March 20 meeting and an 80% chance that the Fed will keep rates unchanged.

The fundamentals and technicals are not encouraging for the bull camp.


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