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Stock Index Futures Rally Despite Jobless Claims

by Archer Financial Services | Mar 26, 2020

By Alan Bush | Senior Financial Economist at ADMIS   

 

STOCK INDEX FUTURES

In a “Buy the rumor, sell the fact,” stock index futures traded lower in the overnight session, after the Senate unanimously approved a $2 trillion economic relief package. The measure now moves to the House and could pass on Friday.
Federal Reserve Powell earlier today said when it comes to lending, “We’re not going to run out of ammunition.
The fourth quarter gross domestic product was up 2.1%, as expected.
However, the more timely metric, weekly jobless claims, increased to a record 3.283 million. This was much worse than the median estimate and more than the highest expectation.
Oddly enough, stock index futures immediately rallied on the worse than anticipated number, which has to be viewed as a sign of strength.

CURRENCY FUTURES

The U.S. dollar is lower for a fourth day, which is an indication that international funding needs are being met.
The euro currency is higher in spite of news that an index of the consumer climate in Germany deteriorated sharply.
The British pound is higher despite weak U.K. retail sales numbers.
A Bank of Japan official said the central bank sees room to ease monetary conditions, if necessary.

INTEREST RATE MARKET FUTURES

Futures were supported by Fed Chair Powell’s comments made earlier today.
The Treasury will auction seven year notes.

GOLD FUTURES

Futures advanced after Fed Chair Powell’s comments.
Gold was also supported by U.S. dollar weakness.
Higher prices are likely for gold futures.



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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