Safe-Haven Flow of Funds Today
INTEREST RATE MARKET FUTURES
Safe-haven buying is supporting futures across the board today.
Federal Reserve speakers today are Lorie Logan at 8:00 central time and Philip Jefferson at 11:50.
The Federal Reserve’s target range for the fed funds rate is 5.25% to 5.50%.
Financial futures markets are predicting there is a 78% probability that the Federal Open Market Committee will keep its fed funds rate unchanged and a 22% probability of a 25 basis point increase at its November 1 policy meeting.
STOCK INDEX FUTURES
On Friday S&P 500 futures rallied above a steep downtrend line.
However, stock index futures declined today in light of renewed Mideast tensions.
There are no major economic reports scheduled for today.
Flight to quality buying is supporting the U.S. dollar and the Japanese yen due to renewed Mideast tensions.
The greenback peaked on October 3 when there were reports that the Bank of Japan intervened in foreign exchange markets to support the yen by selling U.S. dollars and buying yen.
Industrial production in Germany declined 0.2% month-over-month in August 2023, compared with market forecasts of a 0.1% drop and after a downwardly revised 0.6% decline in the previous month.
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