By Alan Bush | Senior Financial Economist at ADMIS
Stock index futures are higher after China’s equities were supported by speculation that the country's central bank entered the foreign exchange market in order to support the slumping yuan.
The benchmark Shanghai index firmed today, although it entered bear market territory last week and was trading near its lowest level in over two years.
The 9:00 central time May factory orders report is expected to be unchanged.
Overall, U.S. stock index futures are holding up relatively well in spite of the ongoing global trade uncertainties.
The euro currency is higher on news that the euro zone’s producer price index in May was up .8% from April and up 3%, year-on-year, which were a little higher than expected.
The currency of the euro zone was also supported by news that German Chancellor Merkel avoided a political crisis for now by reaching an agreement with other German lawmakers regarding immigration laws.
The euro is higher in spite of news that retail sales across the euro zone remained subdued in May.
The British pound is higher after a report showed U.K. construction output growth reached a seven month high in June.
The Australian dollar is higher after the Reserve Bank of Australia left its key interest rate unchanged at a record low of 1.5%, where it has been since August 2016, as expected.
Some flight to quality longs were liquidated in the overnight trade.
There are no Federal Reserve speakers scheduled for today.
The probability of a fed funds rate hike at the Federal Open Market Committee’s September 26 meeting is 77%, which compares to 70% yesterday.
The longer term trend for futures is lower.
September 18 S&P 500
Support 2716.00 Resistance 2745.00
September 18 U.S. Dollar Index
Support 94.210 Resistance 94.820
September 18 Euro Currency
Support 1.16578 Resistance 1.17480
September 18 Japanese Yen
Support .90410 Resistance .90960
September 18 Canadian Dollar
Support .75770 Resistance .76310
September 18 Australian Dollar
Support .7310 Resistance .7415
September 18 Thirty Year Treasury Bonds
Support 144^12 Resistance 145^0
August 18 Gold
Support 1236.0 Resistance 1256.0
September 18 Copper
Support 2.9200 Resistance 2.9750
August 18 Crude Oil
Support 73.75 Resistance 75.37
For more information about these markets, please contact Alan at 312.242.7911 or via email at firstname.lastname@example.org. 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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The risk of loss in trading futures and options on futures can be substantial. Each investor must carefully consider whether this type of investment is appropriate for them. Past performance is not necessarily indicative of future results.