FOMC Begins Two-Day Policy Meeting
STOCK INDEX FUTURES
Stock index futures are mixed to higher.
The employment cost index for the third quarter increased 1.1% when up 1.0% was expected.
The 8:45 central time October Chicago PMI is anticipated to be 45.0, and the 9:00 October consumer confidence index is estimated to be 100.0.
The Federal Open Market Committee begins its two-day policy meeting today and will announce its interest rate decision on Wednesday.
Gains are likely to be limited by the uncertainties of the situation in the Mideast.
The U.S. dollar is a little higher.
In recent weeks there has been only a limited flight-to-quality flow of funds into the greenback, which is a sign of longer-term weakness.
The inflation rate in the euro area declined to 2.9% year-on-year in October 2023, reaching its lowest level since July 2021 and falling slightly under the market consensus of a 3.1% increase.
German retail sales fell unexpectedly by 0.8% in September compared with the previous month when analysts predicted a 0.5% increase.
The Bank of England will hold its policy meeting on Thursday and is expected to leave interest rates unchanged.
The Bank of Japan kept its key short-term interest rate unchanged at -0.1% and that of 10-year bond yields at approximately 0% in its policy meeting today, as widely expected. Also, the central bank removed 1.0% as the upper ceiling on its yield curve control program, although it will keep 1.0% as a reference level.
INTEREST RATE MARKET FUTURES
Futures were higher on reports that upcoming U.S. Treasury refunding auctions may be smaller than previously anticipated.
Financial futures markets are now predicting there is almost a 100% 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.