Central Banks Likely To Hike Rates Wed


Stock index futures are higher.

Investors are looking ahead to the U.S. November consumer price index report released on Tuesday, which most likely will show  annualized inflation slowed further to 7.3% in November.

Also, the Federal Reserve is set to raise rates by 50 basis points on Wednesday, following four consecutive 75 basis point hikes.

The fundamentals and technicals for stock index futures remain supportive.

bull and bear


The U.S. dollar index is lower.

Interest rate differential expectations are long-term bearish for the greenback, and lower prices are likely.

The euro currency is higher. The European Central Bank is expected to deliver a dialed-down 50 basis point rate hike on Thursday, despite worries about a looming recession and signs inflationary pressures may be  easing.

The Bank of England and the Swiss National Bank are also expected to increase borrowing costs at their policy meetings on December 15.

The U.K. economy expanded 0.5% in October from September of 2022, which is the biggest increase in almost a year and above forecasts of 0.4%.

Japan’s November wholesale prices increased 9.3% from a year earlier, a rate of increase that was almost unchanged from the previous month. It was the 21st  consecutive month to show an annual increase in wholesale prices.


The 30-year Treasury bond futures are higher.

The Treasury will auction three-year notes and 10-year notes today.

According to financial futures markets currently, there is a 72.0% probability that the Federal Open Market Committee will increase its fed funds rate by 50 basis points at the December 14  policy meeting and a 28.0% probability that the rate will be hiked by 75 basis points.

The fundamental and technical aspects are supportive for futures.

Interested in more futures markets?  Explore our Market Dashboards here.

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.

© 2024 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