Written Commentary
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.
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.
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