CPI Increases 0.4% as Expected
STOCK INDEX FUTURES
Stock index futures are higher in light of no reported new problems in the banking sector.
The National Federation of Independent Business said its Small Business Optimism Index increased 0.6 point to 90.9 in February. Although the reading was better than the expected 89.9, it still was the 14th consecutive month that the index was under the 49-year average of 98.
The February consumer price index increased 0.4% as anticipated, and the consumer price index on an annualized basis increased 6.0% as predicted.
The U.S. dollar is higher after three days of declines.
Average weekly earnings, including bonuses in the U.K., increased 5.7% year-on-year in the three months to January of 2023, which is the smallest increase since July. This follows an upwardly revised 6.0% increase in the last three months of 2022.
INTEREST RATE MARKET FUTURES
Some of the flight to quality longs that were established over the past few days are being liquidated today.
The recent flight to safety move was due to concerns over the health of the banking sector. Big international banks are also being adversely affected.
A week ago the Federal Reserve was on track for a 50 basis point hike in its fed funds rate at the March 22 policy meeting. However, there has been a shift in expectations.
Financial futures markets are now suggesting the Federal Open Market Committee will hike its fed funds rate by 25 basis points at its meeting next week, and there is a smaller chance the central bank may make no change to interest rates.
The technicals and fundamental for the June 30-year Treasury bond futures have become more supportive in the past seven trading sessions.
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.
© 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.