Explore Special Offers & White Papers from AFS

ECB Adds to Stimulus Program

STOCK INDEX FUTURES

Yesterday June S&P 500 futures advanced to their highest level since March 4 and NASDAQ futures hit their best levels since February 21.

However, today futures are lower after jobless claims in the U.S. came in a little higher than expected. Some of this bearish influence was offset by news that the European Central Bank increased its asset purchasing program by more than analysts had expected.

Jobless claims in the week ended May 30 were 1,887,000 when 1,790,000 were expected.

Stock index futures have been performing well in spite of a variety of old and new geopolitical concerns.

 

CURRENCY FUTURES

After being down for five days and making another low in the overnight trade, the U.S. dollar is higher today. Last week the U.S. dollar broke out to the downside and hit its lowest level since March 13.

The euro currency is higher after the European Central Bank at its regularly scheduled policy meeting today almost doubled its asset-buying program, adding EUR600 billion ($675 billion) to the EUR750 billion that it announced in March.

The central bank said the program that was initially due to end in December would continue until the end of June 2021.

As expected, the ECB also kept its key interest rate unchanged.

The Australian dollar is lower after a report showed retail sales in Australia fell 17.7% in April.

 

INTEREST RATE MARKET FUTURES

Futures were temporarily supported by the jobless claims report but are lower now.

The next Federal Open Market Committee meeting is scheduled for June 9-10. According to financial futures markets there is a 92.9% probability that the FOMC will leave its fed funds rate unchanged at zero to 25 basis points. Yesterday the probability was 97.1%. Also, there is a 7.1% probability of a 25-basis point increase at next week’s meeting.

This suggests that there is a growing belief that there will be some recovery in the economy later this year.

 

SUPPORT & RESISTANCE

 

June 20 S&P 500

Support    3090.00     Resistance    3129.00

 

June 20 U.S. Dollar Index

Support    97.030       Resistance    97.650

 

June 20 Euro Currency

Support    1.11920     Resistance    1.12800

 

June 20 Japanese Yen

Support    .91550        Resistance    .92120

 

June 20 Canadian Dollar

Support    .73800        Resistance    .74300

 

June 20 Australian Dollar

Support    .6875           Resistance    .6942

 

June 20 Thirty Year Treasury Bonds

Support    176^0          Resistance    177^20

 

August 20 Gold

Support    1696.0         Resistance    1732.0

 

July 20 Copper

Support    2.4550         Resistance     2.5050

 

July 20 Crude Oil

Support   36.21             Resistance    37.13

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.

Latest News & Market Commentary

Explore Special Offers & White Papers from Archer Financial Services

Get Started

Contact Us Today