Jobless Claims Less Than Anticipated
STOCK INDEX FUTURES
Stock index futures are mixed despite more hawkish commentary from Federal Reserve officials.
Jobless claims in the week ended February 25 were 190,000 when 200,000 were expected.
Annual nonfarm productivity in the fourth quarter increased 1.7% when up 2.5% was anticipated and unit labor costs increased 3.2%, which compares to the anticipated gain of 1.4%.
Analysts’ outlooks on stock index futures remains very bearish.
The U.S. dollar is higher, and the euro currency is lower.
The euro currency is lower despite news that euro zone inflation moderated less than expected in February. Consumer prices increased 8.5% in February compared with the same month a year earlier, easing slightly from an 8.6% annual increase in January. The reading exceeds the 8.2% consensus forecast. The euro area’s core consumer price index in February hit a new record high at 5.6% compared to the anticipated 5.3%.
The euro zone’s unemployment rate was 6.7% in January, which is unchanged from a revised 6.7% in December.
The European Central Bank is expected to increase interest rates by 50 basis points at its next meeting on March 16
U.K. businesses scaled back plans for price increases in February, according to a Bank of England survey. Businesses surveyed in February expected to hike their prices by 5.4% over the coming year, which is down from 5.8% in January and the smallest planned increase since February 2022.
INTEREST RATE MARKET FUTURES
Minneapolis Federal Reserve Bank President Neel Kashkari said Wednesday he is remaining “open-minded” about whether the Federal Reserve should hike rates by 25 or 50 basis points at its next policy meeting on March 22.
Federal Reserve speakers today are Christopher Waller at 3:00 central time and Neel Kashkari at 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, and there is more talk of another 25 basis point hike at the May meeting.
The severely inverted yield curve is becoming even more inverted but continues to get very little attention.
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.