Interest Rates Mostly Lower
INTEREST RATE MARKET FUTURES
Futures are mostly lower.
However, underlying support remains due to the belief that central banks will not be able to keep raising interest rates for long.
Federal Reserve speakers today are Susan Collins at 11:45, Thomas Barkin at 11:45 and Neel Kashkari at 12:00.
Currently it appears that the Federal Open Market Committee will keep its fed funds rate unchanged at its May 3 policy meeting.
The technicals and fundamentals for futures have become more supportive since early March.
STOCK INDEX FUTURES
Stock index futures are higher as fears over the recent financial turmoil continue to ease.
The fourth quarter gross domestic product increased 2.6% when up 2.7% was expected and personal consumption expenditures were up 1.0% when a gain of 1.4% was anticipated.
Jobless claims in the week ended March 25 were 198,000 when 195,000 were predicted.
Stock index futures have held up well considering recent strains in the international financial system.
The U.S. dollar is lower as money markets are now pricing a pause in interest rate hikes from the Federal Reserve.
The economic sentiment indicator in the euro area fell to 99.3 in March 2023, which is down from a revised 99.6 in the previous month and slightly below market expectations of 99.8. This was the second consecutive month of a decline in confidence.
The Swiss Economic Institute’s (KOF) leading economic barometer declined to 98.2 in March of 2023 from a downwardly revised 98.9 in February, and remaining below the long-run average of 100.
Job vacancies in Australia eased in the three months to February, which is the third straight quarter of decline. Figures from the Australian Bureau of Statistics showed vacancies in the February quarter fell 1.5% from the previous quarter to 438,500.
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