Written Commentary
STOCK INDEX FUTURES
Stock index futures are higher as fears over the recent financial turmoil continued to ease.
The Mortgage Bankers Association’s weekly index of overall home loan application volumes increased 2.9% due to a third straight weekly drop in borrowing costs. Applications to refinance a home loan were up 4.8% and those to purchase a home loan increased 2.0%
The 9:00 central time February pending homes sales report is expected to show a 1.0% increase.
Futures have held up well considering recent strains in the international financial system.
CURRENCY FUTURES
The GfK institute survey showed German consumer sentiment is set to improve in April. The institute forecast its consumer sentiment index will improve to -29.5 heading into April from a revised reading of -30.6 in March, which is slightly below the expectations of -29.0.
Bank of England data showed lenders approved 43,536 mortgages in February, which is up from 39,647 in January. A poll of economists had anticipated approvals of approximately 40,500. This was the first monthly increase in approvals for house purchases since August 2022.
The Australian dollar declined after Australia’s monthly consumer price indicator showed further easing in February, supporting expectations that the Reserve Bank of Australia will pause its interest rate hikes at next week’s policy meeting.
INTEREST RATE MARKET FUTURES
Futures are mixed.
However, underlying support remains due to the belief that central banks will not be able to keep raising interest rates for long.
The Treasury will auction seven-year notes.
The technicals and fundamentals for futures have become more supportive since early March.
The Mortgage Bankers Association’s weekly index of overall home loan application volumes increased 2.9% due to a third straight weekly drop in borrowing costs. Applications to refinance a home loan were up 4.8% and those to purchase a home loan increased 2.0%
The 9:00 central time February pending homes sales report is expected to show a 1.0% increase.
Futures have held up well considering recent strains in the international financial system.
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