By Alan Bush | Senior Financial Economist at ADMIS
U.S. stock index futures are higher as hopes for a new round of tax cuts overshadowed anxiety over global trade issues.
Republicans in the U.S. House of Representatives plan to unveil a new round of tax cuts this week.
Referred to as "Tax Reform 2.0," the package is intended to supplement President Donald Trump's 2017 tax overhaul.
The 2:00 central time July consumer credit report is expected to show an increase of $14 billion.
U.S equity markets continue to outperform China’s stock markets with U.S. stock index futures higher, while the Shanghai composite index is down 1.21% today.
Growth in Chinese exports weakened to slightly under 10% in August, which is down from over 12% in the previous month, according to government reports that were published over the weekend.
The still relatively low interest rate environment remains long term supportive to U.S. stock index futures.
The U.S. dollar is a little lower and the euro currency is higher in spite of hawkish interest rate comments from Eric Rosengren, president of the Federal Reserve Bank of Boston.
The British pound is higher on news that the UK economy grew more strongly than expected in July.
The U.K. economy grew 0.3% in July and 0.6% over the three months to July, which is the fastest pace in almost a year.
After sharp declines on Friday due to the stronger than anticipated nonfarm payrolls report, futures are mixed today.
Over the weekend Eric Rosengren of the Federal Reserve indicated the U.S. central bank should continue hiking its benchmark short term interest rate at its current quarterly pace this year, including at the policy meetings in September and December.
Atlanta Federal Reserve Bank President Raphael Bostic will speak at 10:30.
According to financial futures markets, the probability of a fed funds rate increase at the Federal Open Market Committee’s September 26 meeting is 98% and the probability of another fed funds rate hike in December is 79%.
The long term trend for futures is lower as the U.S. economy remains strong and the FOMC will likely continue on its tightening path.
September 18 S&P 500
Support 2869.50 Resistance 2894.00
September 18 U.S. Dollar Index
Support 94.840 Resistance 95.590
September 18 Euro Currency
Support 1.15260 Resistance 1.16310
September 18 Japanese Yen
Support .89890 Resistance .90320
September 18 Canadian Dollar
Support .75820 Resistance .76110
September 18 Australian Dollar
Support .7089 Resistance .7139
December 18 Thirty Year Treasury Bonds
Support 142^4 Resistance 142^26
December 18 Gold
Support 1195.0 Resistance 1208.0
December 18 Copper
Support 2.5950 Resistance 2.6500
October 18 Crude Oil
Support 67.64 Resistance 68.77
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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