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Stock Index Futures Higher for Third Day

by Archer Financial Services | May 07, 2018

By Alan Bush | Senior Financial Economist at ADMIS   

STOCK INDEX FUTURES

Stock index futures are higher for a third day.

There are no major economic reports scheduled for today.

Futures are performing well on limited news.

In the longer term, traders will probably gradually shift their focus of attention more toward corporate earnings and the still overall accommodative global interest rate policies and away from a variety of geopolitical worries, including global trade tensions.

 

CURRENCY FUTURES

The U.S. dollar continues to advance, as traders focus on the very likely increase in the fed funds rate from the Federal Open Market Committee at its June policy meeting.

The euro currency is lower on news that German manufacturing orders dropped for the third straight month in March.

Total manufacturing orders fell .9%, when economists had forecast an increase of .5%. In addition, the German statistics office revised lower its orders estimate for February. It now shows a monthly drop in orders of .2%, while the initial estimate had indicated a .3% increase.

The data adds to evidence that Europe's largest economy has slowed, following strong growth in the fourth quarter of last year.  

The European Central Bank will probably not be in a position to hike interest rates until possibly 2019.

In addition, recent economic reports from the U.K. suggests the Bank of England may not be able to increase its key interest rate until much later this year.

The Japanese yen in lower even though the minutes from the BoJ’s monetary policy meeting showed Japanese policymakers expect the local economy will continue its upward trend. 

The Canadian dollar and the Australian dollar are lower in spite of higher crude oil prices.

 

INTEREST RATE MARKET FUTURES

Federal Reserve speakers to today are Richmond Federal Reserve Bank President Tom Barkin at 1:00, Dallas Federal Reserve Bank President Robert Kaplan at 2:30 and Chicago Federal Reserve Bank President Charles Evans at 2:30.

The FOMC remains on track to deliver its second rate hike of the year when it meets next month.

The probability of a fed funds rate increase from the FOMC at the June 13 meeting is almost 100%, which is unchanged from yesterday.  

I am still expecting only two more rate hikes this year from the Federal Reserve; one in June and another in December.

 

SUPPORT AND RESISTANCE

June 18   S&P 500

Support    2659.00       Resistance    2679.00

 

June 18   U.S. Dollar Index

Support    92.230         Resistance    92.850

 

June 18   Euro Currency

Support    1.19250       Resistance    1.20180

 

June 18   Japanese Yen

Support    .91610         Resistance    .92260

 

June 18   Canadian Dollar

Support    .77550         Resistance    .78050

 

June 18   Australian Dollar

Support    .7486           Resistance    .7555

 

June 18   Thirty Year Treasury Bonds

Support    143^8          Resistance    144^0

 

June 18   Gold

Support    1306.0         Resistance    1323.0

 

July 18   Copper

Support    3.0600         Resistance    3.1050

 

June 18   Crude Oil

Support    69.55           Resistance    70.89


For more information about these markets, please contact Alan at 312.242.7911  or via email at alan.bush@admis.com. Thank you.

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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 risk of loss in trading futures and options can be substantial. The views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff.  Research analyst does not currently maintain positions in the commodities specified within this report. 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.

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