Explore Special Offers & White Papers from ADMIS

July PPI Stronger Than Expected


S&P 500 and Dow futures advanced to record highs. Recent gains are linked to strong earnings reports.

Jobless claims in the week ended August 7th were 375,000 when 378,000 were expected.

The July producer price index increased 1.0% when a gain of 0.6% was anticipated.

The fundamentals and technical aspects remain positive for U.S. stock index futures.


The U.S. dollar index is higher after the July producer price index came in stronger than predicted. Longer term, the greenback is likely to be supported by safe-haven flows of funds.

Euro zone industrial production fell by 0.3% from a month earlier in June, following a revised 1.1% decline in May and compared with market expectations of a 0.2% drop.

Traders expect the European Central Bank will remain dovish for some time, after policymakers promised last month to keep interest rates at record low levels for even longer in an effort to bring inflation back to its 2.0% target.

U.K. gross domestic product grew by 4.8% on the quarter in April to June 2021, recovering from a 1.6% contraction in the previous three-month period. This was in-line with analyst’s estimates.


Futures are holding up well despite the larger than expected increase in the producer price index.

Recent comments from Federal Reserve officials suggest the central bank could soon taper its asset purchases.

Kansas City Federal Reserve President Esther George said on Wednesday the standard for reducing the bond-buying program may have already been met by the current increase in inflation and recent labor market improvements.

Dallas Federal Reserve President Robert Kaplan on Wednesday said the central bank should begin to taper its monthly purchases of Treasury bonds and mortgage-backed securities in October.

Yesterday’s 10-year Treasury note auction was relatively well received. Today the Treasury will auction 30-year bonds.

The interest rate futures markets have been indicating since May clues about the state of the global economy and inflation with the U.S. Treasury yield curve flattening.

A flattening yield curve suggests a slower rate of global economic growth in the future.

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 Special Offers & White Papers from ADMIS

Get Started