Futures experienced big ranges as the situation in the Middle East escalated overnight. Huge ranges, especially in Reds & Greens with many contracts experiencing 18 tick swings.
Rates markets shrugged off a better than expected ISM Non-Manufacturing number as the focus remains on geopolitical issues and the upcoming NFP number on Friday.
The first “real” trading day was met with little enthusiasm. Futures trade in a 5-6 tick range for most contracts. No real economic news as markets continue to monitor the situation in the Middle East and look forward to unemployment numbers at the end of the week.
After touching session highs before the pit open, we saw a very orderly drift down in futures. No economic news and no Twitter bombs!
A slow overnight led to an equally uninspiring day session. Strong housing numbers edged futures lower. Most contracts had a 3.5-4.5 tick range.
Once again, the biggest move of the day came on the heels of a Trump tweet. Quiet overnight led into the pit open. Less than favorable economic numbers moved futures higher.
Another Fed day, which means minimal activity up to the afternoon announcement. And with an uninspiring release, not much was added late in the session.
The relatively quiet overnight session was interrupted by blowout employment numbers, which moved futures swiftly lower.
SOFR futures positioning ahead of year-end turn drives record OI. SOFR is a logical replacement for Libor futures after the end of 2021, when regulators have called for its replacement.
Quiet overnight session disrupted by China trade talk headlines. Trump signaled a willingness to move forward with the tariffs if a deal isn’t struck by the mid-December deadline.