Stock Index Futures Are Firm
STOCK INDEX FUTURES
U.S. stock index futures are higher.
The 9:00 central time November consumer sentiment index is expected to be 72.3 and the 9:00 September Job Openings and Labor Turnover Survey is anticipated to show 10.1 million.
There are fears that inflation will stay high for longer-than-expected, which could force central banks to tighten credit policies sooner. In addition, there are supply-chain problems and tight labor market conditions
Countering these bearish influences are the better than expected third quarter corporate earnings reports.
The U.S. dollar index advanced to its highest level since July of 2020. The larger than estimated increase in the U.S. consumer price index, reported on Wednesday, puts pressure on the Federal Reserve to tighten credit conditions, which in turn, is bullish for the U.S. dollar.
Industrial production in the euro area edged down 0.2% month-to-month in September of 2021, following a 1.7% decline in the previous month, but less than market forecasts of a 0.5% fall.
The British pound traded at the lowest level since December of 2020. The U.K. economy grew less than expected in the third quarter and industrial output unexpectedly shrank in September.
The Swiss franc fell to a four-month lower after a Swiss National Bank member said the central bank is now committed to currency market interventions.
Wholesale inflation in Japan hit a four-decade high in October due to rising commodity prices and supply chain bottlenecks.
INTEREST RATE MARKET FUTURES
The 30-year Treasury bond futures are higher despite growing calls for the Federal Reserve to hike its fed funds rate.
In addition, there is pressure on other central banks to tighten credit conditions. In Europe, euro zone money markets priced in two full European Central Bank rate increases by the end of next year. Also, the Bank of England is expected to be the first major central bank to hike rates, probably next month.
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