Traders Await Economic Data

STOCK INDEX FUTURES

Stock index futures are lower.

Traders are awaiting economic data due later in the week, including the December CPI, the December PPI and the kick-off of the earnings season.

The 9:00 central time November wholesale inventories report is expected to show a 0.1% decline.

The fundamentals and technicals remain supportive to stock index futures longer term despite recent talk of a potentially less dovish Federal Reserve in 2024.

INTEREST RATE MARKET FUTURES

The Treasury will auction 10-year notes today.

John Williams of the Federal Reserve will speak at 2:15.

Traders continue to believe the Fed will cut interest rates this year but not at the January meeting.

Financial futures markets are predicting there is a 5.0% probability that the Federal Open Market Committee will reduce its fed funds rate by 25 points at its January 31, 2024  policy meeting and a 95% probability of no change.

CURRENCY FUTURES

 

The U.S. dollar index is lower

Lower prices are likely for the U.S. dollar longer term.

Germany’s industrial production fell in November for a sixth-straight month. Output declined 0.7% compared with the previous month from an upwardly revised 0.3% drop in October. This compared with a forecast of zero growth.

Australia’s consumer price index for November increased by only 4.3%, which is the lowest in almost two years and down from October’s 4.9%.

 

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