STOCK INDEX FUTURES
The House passed a short-term spending bill to avert a government shutdown. The measure now heads to the Senate where passage is likely.
Stock index futures quickly advanced when the October producer price index report was released. The October producer price index declined 0.5% when a 0.1% increase was expected on a month-to-month basis, and on a year-to-year basis increased 1.3% when up 2.0% was anticipated.
Retail sales in October fell 0.1% when down 0.3% was estimated.
The Empire State manufacturing index for November was 9.1, which compares to the predicted -3.0.
The 9:00 central time September business inventories report is forecast to show a 0.4% increase.
Yesterday S&P 500 futures broke out above a triple top formation on the daily chart.
The U.S. dollar is higher today after suffering a huge decline yesterday.
Industrial production in the euro area declined by 1.1% month-over-month in September 2023, following 0.6% growth in the previous period and surpassing the anticipated decrease of 1.0%.
The euro area economy is expected to grow by 0.6% in 2023, which is lower than the previously projected 0.8% expansion, according to the European Commission’s Autumn 2023 Economic Forecast. Additionally, the gross domestic product projection for 2024 was revised lower to 1.2% from an earlier estimate of 1.3%.
Annual consumer price inflation in the U.K. in October unexpectedly plunged to a lower-than-expected 4.6% from 6.7% in September. The increase was the smallest in two years and prompted investors to increase their expectations of Bank of England interest rate cuts next year.
The Japanese economy shrank 0.5% quarter-to-quarter in the third quarter of 2023, which is worse than market forecasts of a 0.1% decline and after 1.1% growth in the second quarter. This was the first gross domestic product contraction since the fourth quarter of 2022.
INTEREST RATE MARKET FUTURES
Federal Reserve speakers today are Michael Barr at 8:30 and Thomas Barkin at 2:30.
Financial futures markets are predicting there is almost a 100% probability that the Federal Open Market Committee will keep its fed funds rate unchanged at its December 13 policy meeting. On Monday there was a 14% probability of a 25 basis point increase.
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.