STOCK INDEX FUTURES
Stock index futures are lower.
The June Case-Shiller home price index increased 0.4% when a 0.2% gain was expected.
The 9:00 central time August consumer confidence index is expected to be 100.1.
The 9:00 August Richmond Federal Reserve manufacturing index Is anticipated to be -14.
Futures have performed better than the news would suggest in August, although lower today, which indicates traders are looking beyond recent economic reports to some other not yet obvious bullish fundamental.
CURRENCY FUTURES
The U.S. dollar index has trended lower since July due to expectations that the Federal Reserve will start lowering interest rates soon. However, some of this bearish influence is being partially offset by a flight to quality flow of funds into the relative safety of the U.S. dollar.
The German second quarter adjusted gross domestic product declined 0.1% on the quarter, which was as forecast.
The GfK Consumer Climate Indicator for Germany declined to -22.0 heading into September from a revised -18.6 in the previous period, missing market predictions of -18.0. This was the lowest level since May.
The monthly retail sales balance from the Confederation of British Industry in the U.K. improved to -27 in August from -43 in July but missed the market forecast of -11.
INTEREST RATE MARKET FUTURES
Futures are mostly lower.
The U.S. Treasury will auction two-year notes today.
There are no major Federal Reserve speakers today. However, we can expect commentary from Federal Reserve speakers later this week will echo Fed Chair Powell’s dovish comments that he made on Friday.
There is a 72% 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 28% probability that the FOMC will reduce its key interest rate by 50 basis points in September.
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