Fed Chair Powell in Panel Discussion
STOCK INDEX FUTURES
Stock index futures are higher due to increasing optimism that a deal on the debt ceiling could be reached this weekend or next week.
Federal Reserve Chair Jerome Powell will participate in a panel discussion in Washington, D.C. at 10:00 central time.
Stock index futures have performed well in 2023 despite a variety of bearish news and an ongoing hawkish Federal Reserve.
Hawkish comments from Federal Reserve officials have supported the U.S. dollar in the last two weeks, although not today.
The annual producer inflation in Germany eased for the seventh consecutive month to a 25-month low of 4.1% in April 2023 when analysts were expecting 4.0%.
U.K. consumer confidence increased to the highest level since early 2022. The overall index improved to -27 in May from -30 in April.
The annual inflation rate in Japan unexpectedly accelerated to 3.5% in April defying forecasts for a further slowdown to 2.5%. The core inflation rate increased to a three-month high of 3.4% and exceeded the Bank of Japan’s 2.0% target for the thirteenth consecutive month.
Retail sales in Canada decline by 1.4% in March as expected.
INTEREST RATE MARKET FUTURES
Futures are lower due to ongoing hawkish comments from Federal Reserve officials.
Financial futures markets are predicting there is a 60% probability that the Federal Open Market Committee will keep its fed funds rate unchanged at its June 14 policy meeting, and there is a 40% chance of a 25 basis point increase.
A hawkish Fed is dominating the fundamentals in the near term.
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.