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Stock Index Futures Traders Focusing on the Bullish News

by Archer Financial Services | Jun 11, 2018

By Alan Bush | Senior Financial Economist at ADMIS   

STOCK INDEX FUTURES

Stock index futures are higher as traders look beyond the Group of Seven meeting to the Tuesday Trump-Kim summit.

President Donald Trump refused to sign the communique from the G-7 industrialized nations meeting over the weekend.

Investors largely brushed off tensions resulting from the summit and focused on market friendly signals from the new Italian government.

There are no major U.S. economic reports due today.

Traders appear to be gradually shift their focus of attention more toward the still bullish overall accommodative global interest rate policies and away from the geopolitical worries.

 

CURRENCY FUTURES

The euro currency advanced after an Italian newspaper said Italy’s new economy minister ruled out leaving the euro and said he would focus on structural reforms.

The euro was also supported by the belief that the European Central Bank, at its policy meeting on Thursday will debate the end of its quantitative easing program.

The British pound is lower due to weak economic figures. U.K. manufacturing output fell 1.4% in April compared with March, which is the largest month-to-month decline since October 2012.

The Japanese yen is lower in spite of news that Japan’s April core machinery orders increased 10.1%, when a 2.5% gain was anticipated.

The Canadian dollar is under pressure after President Trump refused to endorse the G-7 communique.      

   

INTEREST RATE MARKET FUTURES

Futures are lower across the board. The lack of flight to quality buying in any of the flight to quality vehicles, including Treasuries, suggests the market believes there will be a resolution to one degree or another to the variety ongoing geopolitical issues.

The Treasury will auction three and 10 year notes today.

The probability of a fed funds rate hike from the Federal Open Market Committee at the June 13 meeting is 94%, which is unchanged from late last week.

Although geopolitical events will inevitably develop from time to time, which will produce short periods of flight to quality buying, the main trend for futures is lower.

 

SUPPORT AND RESISTANCE

June 18   S&P 500

Support    2766.00       Resistance    2787.00

 

June 18   U.S. Dollar Index

Support    93.290         Resistance    93.660

 

June 18   Euro Currency

Support    1.17760       Resistance    1.18340

 

June 18   Japanese Yen

Support    .90790         Resistance    .91590

 

June 18   Canadian Dollar

Support    .76680         Resistance    .77270

 

June 18   Australian Dollar

Support    .7583           Resistance    .7625

 

September 18   Thirty Year Treasury Bonds

Support    142^16        Resistance    143^12

 

August 18   Gold

Support    1295.0         Resistance    1309.0

 

July 18   Copper

Support    3.2400         Resistance    3.3150

 

July 18   Crude Oil

Support    64.71           Resistance    65.85


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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