Written Commentary
STOCK INDEXES
Global equity markets overnight were mostly higher but gains overnight were all less than 1%. In today’s action the bull camp takes comfort from the mid-August washout with that break reportedly the result of unrelenting rate hike chatter and disappointing US economic data. However, US economic data has improved this week which could decrease the duration of recession and or help engineer a soft landing. The highlight for global markets will come during mid-morning US trading hours as Fed Chair Powell will speak at the Kansas City Fed’s Jackson Hole Economic Symposium.
Like the S&P, the bull camp takes solace from the mid-August high to low slide in Dow futures of 1493 points, as that probably factors in fresh rate hike threats.
BONDS
With the bond market in the last COT positioning report posting a net spec short of 36,371 contracts and the T-note market posting a net short of 390,703 contracts, yesterday’s aggressive reversal from a new low for the move was likely classic short covering ahead of a potential volatility event this morning. However, volatility from the Fed Chairman speech could have its thunder stolen by the Fed’s favorite inflation measure scheduled for release before the speech. In fact, fresh readings on US personal consumption and spending will also be released before the speech.
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.
