Weak ADP Report Boosts Bonds


Stock index futures are higher despite weaker than expected economic reports.

Mortgage applications in the U.S. declined 2.4% in the week ending August 27, following a 1.6% gain in the previous period, according to data from the Mortgage Bankers Association. Applications to refinance a home declined 3.8%, while those to purchase a home increased 0.6%.

The national employment report from Automated Data Processing showed 374,000 new jobs in August, which is well below market expectations of a 613,000 increase. The ADP said it has seen a decline in new hires following job growth in first half of 2021.

The 8:45 August PMI manufacturing final is predicted to be 61.2.

The 9:00 August Institute for Supply Management manufacturing Index is estimated to be 59.0 and the 9:00 July construction spending report is expected to show a 0.3% increase.

The fundamental and technical aspects remain supportive.


The U.S. dollar came under pressure when the weak ADP employment change report was released.

The unemployment rate in the euro area edged down to 7.6% in July from an upwardly revised 7.8% in June, matching analysts’ forecasts. This the lowest reading since May of last year as the number of unemployed people declined 430,000 to 14.613 million.

The ECB will hold its next policy meeting on September 9. It is likely that ECB will continue to communicate that monetary policy will remain loose for longer despite calls for the central bank to scale-back its asset purchase program.


There is growing evidence that growth in the U.S. economy is slowing.

The flattening U.S. Treasury yield curve since May offered clues about the state of the global economy and inflation.  A flattening yield curve suggests a slower rate of global economic growth in the future.

Higher prices are likely for the 30-year Treasury bond futures.

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.

Latest News & Market Commentary

Explore the latest edition of The Ghost in the Machine

Explore Now