US Dollar Remained Firm

STOCK INDEX FUTURES

Stock index futures are lower as investors remain worried about slowing global economic growth.

The August Empire State manufacturing index was negative 31.1 when 5.0 was expected. It was 11.1 in July.

The 9:00 central time August housing market index is anticipated to be 55.

Despite lower futures today and an ongoing hawkish tone to Federal Reserve officials’ comments, stock index futures have performed well in recent weeks.

Dollar Bill

CURRENCY FUTURES

The U.S. dollar remained firm after hawkish remarks from Federal Reserve officials. Several policymakers have pointed out that a dovish pivot is unlikely despite signs that inflation could be peaking.

The euro currency is lower due to increasing concerns over an economic slowdown in the euro zone.

The Japanese economy grew by 2.2% on an annualized basis in the second quarter of 2022, which compares to market estimates of a 2.5% growth.

INTEREST RATE MARKET FUTURES

Futures were support by the very weak August Empire State manufacturing index.

The FOMC minutes from the July 27 Federal Open Market Committee meeting will be released  on Wednesday.

Christopher Waller of the Federal Reserve will speak at 9:50.

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

According to financial futures markets, there is a 56.5% probability that the Federal Open Market Committee will hike its fed funds rate by 50 basis points and a 43.5% probability that the rate will increase by 75 basis points at the September 21 policy meeting.

Higher prices are likely across the board for futures despite the hawkish Federal Reserve.

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.

Latest News & Market Commentary

Explore the latest edition of The Ghost in the Machine

Explore Now