Written Commentary
STOCK INDEX FUTURES
Stock index futures are higher.
Import prices in August declined 0.3% when down 0.2% was expected, and export prices fell 0.7%, which compares to the 0.1% drop that was anticipated.
The 9:00 central time September consumer sentiment index is predicted to be 68.0.
Stock index futures have recently performed better than the news would suggest, which should be viewed as a sign of strength.
CURRENCY FUTURES
The U.S. dollar index is lower in light of an increased possibility of the Federal Reserve becoming more aggressively accommodative this year. A double top pattern remains on the daily chart.
Industrial production in the euro area declined by 0.3% month-over-month in July, which was as expected.
European Central Bank policymaker, Robert Holzmann, said there could be room for another interest rate cut in December.
A recent poll showed the Bank of Japan will not hike interest rates at its policy meeting next week. However, a majority still anticipate an increase by year-end.
INTEREST RATE MARKET FUTURES
A report this morning showed import and export prices declined more than expected in August, which supported futures.
Currently there is a 57% probability that the Federal Open Market Committee will lower its funds rate by 25 basis points at its September 18 meeting, and there is a 43% probability that the FOMC will reduce its key interest rate by 50 basis points in September.
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