Dow Advancing to Record High
STOCK INDEX FUTURES
Stock index futures are higher with the Dow advancing to a new record high. Investors’ demand for equities has revived as bond markets have calmed.
Jobless claims in the week ended March 6 were 712,000 when 725,000 were expected.
The 9:00 central time January Job Openings and Labor Turnover Survey is anticipated to show 6.585 million. The Labor Department’s JOLTS report tracks monthly changes in job openings and offers rates on hiring and quits.
Stock index futures are performing well for the news.
The U.S. dollar is lower, and the euro currency is higher.
The euro temporarily declined after the European Central Bank left monetary policy unchanged but said it would conduct emergency bond purchases at a significantly higher pace over the next quarter in an effort to curb rising bond yields and support the economy.
The ECB said it expects purchases under a 1.85 trillion-euro bond-buying program to be conducted at a substantially higher pace over the next three months than earlier this year. The central bank left its key interest rates unchanged.
The Bank of Canada yesterday kept its benchmark interest rate unchanged at 0.25%. The central bank’s governing council said it would continue its large-scale asset acquisition plan until a recovery is well under way.
The Japanese yen is lower after it was reported that producer prices declined 0.7% on an annualized basis in February.
INTEREST RATE MARKET FUTURES
The Treasury will auction 30-year bonds today.
The June 30-year Treasury bond futures are now above a three-week downtrend line.
There is increasing pressure on the Federal Reserve to limit upside pressure on longer-term interest rates, especially after the European Central Bank today said it will ramp up the pace of its purchases of euro zone debt. The Reserve Bank of Australia earlier this month increased the size of its asset purchase plan.
I believe major central banks, including the Federal Reserve will eventually employ tools to mitigate rising long-term interest rates.
The next Federal Open Market Committee meeting is scheduled for March 17.
Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. The information provided is designed to assist in your analysis and evaluation of the futures and options markets. However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.