Q3 Corporate Earnings Season Kicks Off
STOCK INDEX FUTURES
U.S. stock index futures are mixed after four consecutive days of higher prices.
The U.S. third-quarter corporate earnings reporting season kicks off today with several large U.S. banks reporting this morning.
Many analysts believe earnings will continue to rebound, but the pace of improvement will be slow.
The National Federation of Independent Business optimism index increased 3.8 points to 104.0 in September, which is the highest level since February. The median estimate was 100.9. The NFIB is a monthly assessment of small businesses in the U.S., which account for almost half of the private sector jobs.
The September consumer price index was up 0.2%, as anticipated.
Stock index futures have recently performed well on the news, and the technical situation has improved.
The euro currency is lower after a report showed German economic expectations fell in October after going up in the last two months, according to the ZEW economic research institute.
The measure of economic expectations fell to 56.1 in October from 77.4 in September when economists’ forecast the index would be 74.0.
German consumer prices fell 0.2% in September, as predicted.
Informal negotiations on Brexit continue in Brussels, as both the U.K. and the E.U. pledged to reach an agreement on their future relationship by October 15.
The Japanese yen is lower despite news that the BoJ’s latest “tankan” survey for October showed the manufacturers’ sentiment index increased to -26 points from September’s -29, while the service-sector index improved to -16 from -18.
INTEREST RATE MARKET FUTURES
Futures are mostly higher despite the better than predicted National Federation of Independent Business optimism index.
Federal Reserve speakers today are Thomas Barkin at 11:25 and Mary Daly at 7:00 p.m.
Financial futures markets are predicting there is a 97.7% probability that the Federal Open Market Committee will keep its fed funds rate unchanged at the November 4-5 policy meeting.
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.