Earnings Pressure Stock Index Futures

STOCK INDEX FUTURES

Stock index futures are lower due to weak guidance from another chipmaker in light of macro headwinds and supply chain bottlenecks.

Some traders are reluctant to open new positions ahead of the U.S. consumer price index report on Wednesday.

The July National Federation of Independent Business small business optimism index edged higher to 89.9 in July but was still close to a 9-1/2-year low of 89.5 hit in June.

Corporate earnings remain in focus with the second-quarter reporting period more than halfway completed. Approximately 78% of reports have beaten expectations, which is above the long-term average.

Despite an ongoing hawkish tone to Federal Reserve officials’ comments, stock index futures are holding up well.

CURRENCY FUTURES

The Swiss franc is approaching a three-month high due to a hawkish Swiss National Bank. There is speculation that policymakers are considering a 50 to 75 basis point rate hike at the central bank’s next policy meeting.

The Australian dollar is lower on news that the Australian consumer confidence index fell 3.0% in August from July.

INTEREST RATE MARKET FUTURES

The Treasury will auction three-year notes.

The  inverted Treasury yield curve continues to flash warnings of economic risks.

According to financial futures markets, there is a 28.5% probability that the Federal Open Market Committee will hike its fed funds rate by 50 basis points and a 71.5% probability that the rate will increase by 75 basis points at the September 21 policy meeting.

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