Written Commentary
STOCK INDEX FUTURES
Stock index futures are lower as investors continue to worry about higher interest rates after hawkish remarks from Fed Chair Powell at the Jackson Hole Symposium on Friday. Powell said tightening has a long way to go.
The 9:30 central time August Dallas Federal Reserve manufacturing survey is anticipated to be negative 13.2.
Stock index futures are likely to at least partially recover this afternoon.
CURRENCY FUTURES
The U.S. dollar is higher, briefly scaling fresh 20-year highs against a basket of other currencies, as Federal Reserve Chair Jerome Powell signaled interest rates would be kept higher for longer to bring down high inflation.
The long term trend for the U.S. dollar is higher.
The euro traded below $1.00, close to 20-year lows as concerns of a deep and prolonged recession in Europe more than offset the bullish influence of higher interest rates by the European Central Bank.
INTEREST RATE MARKET FUTURES
Lael Brainard will speak at 1:15.
According to financial futures markets, there is a 33.5% probability that the Federal Open Market Committee will hike its fed funds rate by 50 basis points and a 66.5% probability that the rate will increase by 75 basis points at the September 21 policy meeting.
The inverted Treasury yield curve continues to flash warnings of economic risks ahead.
Futures are likely to at least partially recover this afternoon.
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