Key Takeaways with Craig
US Equity prices came roaring out of the gate to begin October trading as all four major indexes traded sharply higher. With the price rally, implied volatility in CME’s Equity Index options markets came off, but remains elevated relative to the last few months. US Treasury yields traded lower, especially the 10-Year where the Micro 10-Year Yield futures price was down by about 15.5 basis points. The Micro 2-Year Yield was only down by about 8 basis points so the inversion of the 2s versus 10s is back up to over 50 basis points.
CME Group FX futures markets showed the US Dollar mostly weaker against major currencies as follows:
- British Pound was up 1.3% versus the Dollar
- Aussie Dollar was up 1.6%
- Canadian Dollar was up 1.3%
Finally, WTI Crude Oil futures prices were up by nearly 5% after it was reported that the group known as OPEC+ was considering an output cut of more than 1 million barrels per day. Interestingly, according to CME’s OPEC Watch Tool, which uses NYMEX WTI crude oil option prices to calculate the probabilities of certain outcomes from the nearest weekly and monthly options that expire around the OPEC meeting, the options market is pricing in a nearly 60% chance of no change or small output increase at this week’s OPEC meeting and a 40% chance of an output decrease. We’ve included an excerpt from the tool below. If you would like to learn more about this tool which is available on CME’s website, please click here.
Todays Featured Videos
Today's Future Price Action
The information in the market commentaries have been obtained from sources believed to be reliable, but we do not guarantee its accuracy and expressly disclaim all liability. Neither the information nor any opinions expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts. The information on this site compiled by CME Group is for general purposes only. All information and data herein is provided as-is. Additionally, all examples on this site are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience. CME Group assumes no responsibility for any errors or omissions. CME Group, its affiliates and any third party information and content providers expressly disclaim all liability with respect to the information and data contained herein including without limitation, any liability with respect to the accuracy or completeness of any data. You use the data herein solely at your own risk. All data and information provided herein is not intended for trading purposes or for trading advice. All matters pertaining to rules and specifications herein are made subject to and superseded by official CME, CBOT, NYMEX and COMEX rules. Current rules should be consulted in all cases concerning contract specifications.
Neither futures trading nor swaps trading are suitable for all investors, and each involves the risk of loss. Due to the leveraged nature of futures trading and swaps trading, it is possible to lose more than the amount deposited in a position. Therefore, traders should not deposit more funds than they can afford to lose without negatively affecting their lifestyles. A trader cannot expect to profit on each trade, and should only devote a small amount of their available funds to each trade. All references to options refer to options on futures.
Past performance is not necessarily indicative of future performance.
CME Group, the Globe Logo, Chicago Mercantile Exchange, Globex and CME are trademarks of Chicago Mercantile Exchange Inc. CBOT is the trademark of the Board of Trade of the City of Chicago, Inc. NYMEX is the trademark of the New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. All other marks are the property of their respective owners. Each of Chicago Mercantile Exchange Inc. (ARBN 103 432 391), The Board of Trade of the City of Chicago Inc (ARBN 110 594 459), the New York Mercantile Exchange Inc (ARBN 113 929 436) and Commodity Exchange, Inc. (ARBN 622 016 193) is a registered foreign company in Australia and holds an Australian market licence.
This site does not constitute a prospectus, product disclosure statement or legal advice, nor is it a recommendation to buy, sell or retain any specific investment or to utilise or refrain from utilising any particular service. Readers should consult their legal advisors for legal advice in connection with the matters covered on this site.