Written Commentary
STOCK INDEX FUTURES
U.S. stock index futures are higher.
NASDAQ futures advanced more than 100 points after a series of better than expected corporate earnings results from major technology firms.
June personal income fell 1.1% when down 1.0% was expected.
The 8:45 central time July Chicago PMI index is anticipated to be 42.8.
The 9:00 July consumer sentiment index is estimated to be 73.2.
Stock index futures have upside momentum.
CURRENCY FUTURES
The U.S. dollar index fell to a new two-year low.
Some of the bears on the greenback speculated that the Federal Reserve might loosen its approach to inflation, which is something analysts believe could happen at its next policy meeting in September.
Consumer price inflation ticked up in the euro zone in July. The European Union’s statistics agency Eurostat said the first estimate of consumer prices was 0.4% higher in July compared with same month a year ago and is up from the 0.3% increase that was registered in June.
The euro zone economy contracted at the fastest pace ever recorded during the second quarter. Across the 19 countries that use the euro as their currency, the gross domestic product fell 12.1% in the second quarter. Economists had expected a 11.3% contraction.
Higher crude oil prices supported the “commodity currencies,” the Canadian dollar and the Australian dollar.
INTEREST RATE MARKET FUTURES
Futures are steady to higher on the belief that the Federal Reserve will keep interest rates low for a longer period of time.
Federal Reserve Chairman Jerome Powell’s comments Wednesday after the Federal Open Market Committee meeting indicated the Fed will maintain its accommodative monetary policy stance.
The next Federal Open Market Committee meeting is scheduled for September 16. Financial futures markets are predicting there is a 92% probability that the FOMC will maintain its fed funds target rate at zero to 25 basis points.
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