Stock Index Futures Are Rebounding
STOCK INDEX FUTURES
Stock index futures are rebounding as dip buyers emerged to blunt a five-day selloff. The market movement came in tandem with easing Treasury yields.
Durable goods orders in August were down 0.2% when a decline of 0.4% was expected.
The 9:00 central time September consumer confidence report is anticipated to be 104.3.
The 9:00 August new home sales report is estimated to show 498,000 and the 9:00 September Richmond Federal Reserve manufacturing index is predicted to be -4.
After hitting new highs for the move yesterday, the U.S. dollar index is lower today.
Interest rate differential expectations remain bullish for the greenback long term.
The British pound recovered some ground after tumbling to as low as $1.0350 yesterday, which was the weakest on record. Some analysts believe the pound could reach parity with the U.S. dollar or even fall below $1.00. Recent tax cuts announced by the U.K. government were not welcomed by investors as they are likely to make debt levels increase substantially.
INTEREST RATE MARKET FUTURES
Futures are higher even though Susan Collins, the new president of the Federal Reserve Bank of Boston, on Monday said she is committed to bringing inflation down to 2.0% even if it means slowing the economy.
Earlier today Fed Chair Jerome Powell spoke on digital finance.
Other Federal Reserve speakers today James Bullard at 8:55, Neel Kashkari at 12:00 and Mary Daly at 7:35 PM.
The Treasury will auction 5-year notes today.
According to financial futures markets, there is a 32.0% probability that the Federal Open Market Committee will hike its fed funds rate by 50 basis points and a 68.0% probability that the rate will increase by 75 basis points at the November 2 policy meeting.
The inverted Treasury yield curve continues to warn of economic risks ahead.
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