Stocks on Course For Best Week Since Aug
STOCK INDEX FUTURES
U.S. stock index futures are higher extending the rally for the third straight session due to renewed hopes of further stimulus.
Stock index futures are on course for the best week since August.
Futures are performing well on the news, and the technical situation has improved.
The U.S. dollar index fell for the third consecutive session and are at the lowest level since September 22. Investors’ risk appetite continues to improve due to hopes of further stimulus in the U.S. after the White House signaled it is open to negotiations on a large stimulus deal.
The U.K. economy expanded 8.0% in the three months to August, recovering from five consecutive periods of contraction, but missing expectations of 8.2% growth. On a monthly basis, the economy advanced 2.1%, but was slower than the 6.4% growth in July.
The British pound remains close to a three-week high on hopes of a Brexit breakthrough, as both the U.K. and the E.U. pledged to reach an agreement on their future relationship by October 15.
INTEREST RATE MARKET FUTURES
In light of increasing optimism over a U.S. fiscal stimulus deal, flight to quality longs are being liquidated, especially in the 30-year Treasury bond futures.
The 30-year Treasury bond futures are likely to come under additional downside pressure.
Financial futures markets are predicting there is a 98.8% probability that the Federal Open Market Committee will keep its fed funds rate unchanged at the November 4-5 policy meeting.
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