By Alan Bush | Senior Financial Economist at ADMIS
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.
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.
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.
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 email@example.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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