Written Commentary
Download PDF
STOCK INDEX FUTURES
U.S. stock index futures are higher due to central banks’ stimulus measures and investors’ optimism about the pace of the economic recovery.
The May Chicago Federal Reserve national activity index was positive 2.61 when negative 4.0 was expected.
The 9:00 central time May existing home sales report is anticipated to be 4.29 million.
Stock index futures appear to be overperforming the news today.
In addition, the technical picture remains positive for stock index futures.
CURRENCY FUTURES
The U.S. dollar is lower, and the euro currency is higher.
In spite of today’s price moves, the U.S. dollar appears to be bottoming and the euro currency appears to be topping, especially now that the European Central Bank is becoming more accommodative.
The British pound is higher despite news that U.K. manufacturer output in the three months to June declined at the fastest rate on the record, according to the Confederation of British Industry survey.
INTEREST RATE MARKET FUTURES
Prices are mostly higher in spite of higher stock index futures.
The yield on the 10-year U.S. Treasury note ticked down to 0.686% from 0.696% on Friday.
There are no major Federal Reserve speakers scheduled for today.
According to financial futures markets there is a 97.8% probability that the Federal Open Market Committee will leave its fed funds rate unchanged at zero to 25 basis points at its July 29 policy meeting.
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.
