Dollar Higher For Second Day
STOCK INDEX FUTURES
NASDAQ futures hit a record high in the overnight trade.
However, major stock index futures are mixed to lower this morning on limited news.
There are no major economic reports scheduled for today.NASDA
The fundamental and technical aspects remain supportive for stock index futures.
The U.S. dollar is higher for a second day, moving away from a near one-month low hit last week.
The euro currency is lower on news that the ZEW Indicator of Economic Sentiment for Germany declined to 26.5 in September from 40.4 in August, and was below market forecasts of 30.0. The gauge declined for the fourth consecutive month to the lowest level since March 2020. The assessment of the economic situation in Germany however, improved to 31.9 from 29.3 in August. This reading compares with economists’ forecast of 33.0.
Euro zone quarterly economic growth was revised higher to 2.2% in the second quarter of 2021, following two consecutive periods of contraction.
The European Central Bank will hold its next policy meeting on September 9. It is likely that the central bank will continue to communicate that monetary policy will remain loose for longer despite calls for the ECB to scale-back its asset purchase program.
The Reserve Bank of Australia kept its cash rate unchanged at a record low of 0.1% at its policy meeting today, as widely expected. The RBA confirmed plans to reduce the purchases of government bonds to A$4.0 billion a week until at least mid-February 2022. In addition, the central bank said GDP is expected to fall materially in the third quarter, and the jobless rate will likely move higher in the coming months. Policymakers reaffirmed their commitment to maintain supportive monetary conditions and not increase the cash rate until inflation is within the 2.0% to 3.0% target range, which is a condition that will not be reached before 2024.
INTEREST RATE MARKET FUTURES
The Treasury will auction 52-week bills and three-year notes today.
The 30-year Treasury bond futures remain in a two-month trading range, but are likely to ultimately break out to the upside, as the rate of growth in the global economy slows.
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