PPI Increases More Than Anticipated
STOCK INDEX FUTURES
The January producer price index increased 0.7% when up 0.4% was expected.
Housing starts in January were 1.309 million when 1.365 million were anticipated and building permits were 1.339 million, which compares to the estimated 1.350 million.
Jobless claims in the week ended February 11 were 194,000 when 200,000 were predicted
The February Philadelphia Federal Reserve manufacturing index was -24.3 when -7.2 was expected.
Some afternoon recovery is likely for futures.
The U.S. dollar index is being supported by the larger than anticipated increase in the U.S. producer price index.
Inflation numbers in Europe have recently come in lower than anticipated. Today it was reported that Ireland’s consumer price inflation rate eased for a third consecutive month to 7.8% year-on-year in January 2023, which is the lowest since last May.
Exports in Japan in January increased 3.5% on the year when a decline of 0.5% was expected.
Figures from the Australian Bureau of Statistics showed Australia’s employment surprised in January by falling for a second straight month, while the jobless rate jumped to its highest since last May. The jobless rate climbed to 3.7% when analysts had anticipated it to hold at 3.5%. Net employment fell 11,500 in January from December when they dropped a revised 19,900. Market forecasts had been for an increase of 20,000 in January.
This lessens pressure on the Reserve Bank of Australia for further aggressive interest rate hikes.
INTEREST RATE MARKET FUTURES
Futures are lower due to this morning’s bearish on balance economic reports.
Federal Reserve speakers today are Loretta Mester at 7:45, James Bullard at 12:30, Lisa Cook at 3:00 and Loretta Mester 5:00.
Most likely the Federal Open Market Committee will increase its fed funds rate by 25 basis points at its March 22 policy meeting.
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.