Written Commentary
CURRENCY FUTURES
Flight quality buying is supporting the U.S. dollar index in light of ongoing concerns about the banking system in Europe.
The euro currency is lower, moving away from recent seven-week highs.
The S&P Global Flash euro zone PMI composite output index, which gauges activity in the manufacturing and services sectors, increased to 54.1 in March from 52.0 in February. Economists estimated the PMI to come in at 51.9.
The S&P Global/CIPS U.K. services PMI fell to 52.8 in March 2023 from 53.5 in February, which is below market expectations of 53.
Japan’s consumer prices increased at a slower pace in February. Overall consumer prices increased 3.3% from a year earlier in February, compared with January’s 4.3% increase.
The Bank of Japan has said it expected consumer prices to fall below its 2.0% target in the fiscal year beginning in April as the increase in import prices begins to slow.
STOCK INDEX FUTURES
Stock index futures are lower due to renewed concerns over the global banking system.
Durable goods orders in February declined 1.0% when an increase of 1.5% was expected.
The 8:45 central time March PMI manufacturing index is anticipated to be 47.2, and the PMI services index is predicted to be 50.3.
Futures have held up well considering recent strains in the international financial system.
INTEREST RATE MARKET FUTURES
Futures are higher across the board in a renewed flight to safety flow of funds.
Global bonds rallied as renewed concerns over the banking sector increased demand for safe assets and enhanced the belief that central banks will not be able to keep raising interest rates for long.
James Bullard of the Federal Reserve will speak at 8:30.
The technicals and fundamentals for futures have become more supportive in the past two weeks.
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