By Alan Bush | Senior Financial Economist at ADMIS
U.S. stock index futures continue to be supported by Friday’s mostly better than expected U.S. jobs data that helped traders look past increased trade tensions between the U.S. and China.
Some analysts are saying stock index futures are higher because the trade war didn’t worsen over the weekend.
The 2:00 central time May consumer credit report is expected to show an increase of $12.4 billion.
Second quarter earnings reports start on Friday the 13th with major banks reporting. S&P 500 companies are anticipated to report 21% growth in earnings per share for the June quarter, according to Thomson Reuters I/B/E/S.
Futures are performing better than the news would suggest, which should be viewed as a sign of strength.
Overall, U.S. stock index futures are holding up relatively well in spite of the ongoing global trade uncertainties.
The U.S. dollar is lower and the euro currency is higher as interest rate differential expectations are beginning to turn a little less favorable to the U.S. dollar and a bit more supportive to the euro.
The British pound continued higher today after last week Bank of England Governor Mark Carney said the U.K. economy is supporting the case for higher interest rates.
Sterling brushed off news of the resignation of two ministers that are in opposition to British Prime Minister Theresa May’s plan for leaving the E.U.
The Japanese yen is lower as flight to quality longs are liquidated. However, pressure on the yen was limited by news of wage gains in Japan.
Higher crude oil prices supported the Canadian dollar and the Australian dollar.
Futures are mostly lower as flight to quality longs are liquidated.
The probability of a fed funds rate hike at the Federal Open Market Committee’s September 26 meeting is 82%, which is unchanged from Friday.
Although flight to quality buying is likely to come in from time to time, the longer term trend for futures is lower.
September 18 S&P 500
Support 2759.00 Resistance 2781.00
September 18 U.S. Dollar Index
Support 93.380 Resistance 93.810
September 18 Euro Currency
Support 1.18010 Resistance 1.18630
September 18 Japanese Yen
Support .90760 Resistance .91110
September 18 Canadian Dollar
Support .76360 Resistance .76660
September 18 Australian Dollar
Support .7424 Resistance .7491
September 18 Thirty Year Treasury Bonds
Support 145^0 Resistance 145^30
August 18 Gold
Support 1252.0 Resistance 1271.0
September 18 Copper
Support 2.8100 Resistance 2.8900
August 18 Crude Oil
Support 73.32 Resistance 74.41
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.