Index Futures Are Higher
STOCK INDEX FUTURES
Stock index futures are higher following a Fed-induced selloff last week.
Traders remain concerned that a more hawkish Fed could tip the economy into recession.
The 9:00 central time December housing market index is expected to be 34.
Despite recent pressure, the fundamentals and technicals for stock index futures remain supportive.
The U.S. dollar index continues to underperform the news.
Interest rate differential expectations are long-term bearish for the greenback, and lower prices are likely.
German business sentiment increased for a third consecutive month in December. The Ifo business climate index increased to 88.6 in December from a revised 86.4 in November, according to data from the Ifo Institute. Economists expected the index to increase to 87.4. The Ifo index is based on a poll of approximately 9,000 companies in manufacturing, services, trade and construction.
Hourly labor costs in the euro increased by 2.9% year-on-year in the third quarter of 2022, easing from the downwardly revised 3.8% growth in the previous period.
The Confederation of British Industry said its gauge of manufacturing output during the three months to December fell to the lowest level since September 2020. Its gauge of new orders fell to -6 in December from -5 in November. However, this was a smaller drop than the decline to -9 that economists had forecast.
The Bank of Japan is expected to leave its negative interest rate and yield curve control program unchanged at the end of its two-day meeting tomorrow.
INTEREST RATE MARKET FUTURES
The 30-year Treasury bond futures are lower today after making three-month highs last week.
According to financial futures markets currently, there is a 68.0% probability that the Federal Open Market Committee will increase its fed funds rate by 25 basis points at the February 1 policy meeting and a 32.0% probability that the rate will be hiked by 50 basis points.
The fundamental and technical aspects are supportive for futures.
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.