By Alan Bush | Senior Financial Economist at ADMIS
Stock index futures traded lower yesterday with follow-through today after cautious comments about the global economy from U.S. Federal Reserve Chairman Jerome Powell.
Mr. Powell said further stimulus could be needed to support the economy's recovery.
Jobless claims in the week ended May 9 were 2.981 million when 2.700 million were expected.
Some recovery is likely for stock index futures from the current lower levels.
The U.S. dollar is higher for a second day after President Trump said he would prefer a stronger dollar to accompany the economic recovery.
The British pound is lower after Bank of England Governor Andrew Bailey said Britain’s economy may suffer long-term damage.
The Japanese yen is lower despite a report that Bank of Japan Governor Haruhiko Kuroda said he saw no immediate need to deepen the bank's negative interest rate policy. Mr. Kuroda said while the bank's current short-term interest rate target is minus 0.1%, there is still "substantial room" to cut further. However, it was not necessary to do so at this point.
The Australian dollar is lower after it was recently reported that Australia’s economy lost 594,300 jobs in April, which is worse than the 575,000 expected. Full time employment was down by 222,500 with 373,800 part time jobs lost.
Some flight to quality buying is coming into the long end of the curve in light of lower stock index futures.
Federal Reserve speakers today are Neel Kashkari at 12:00, Raphael Bostic at 2:00 and Robert Kaplan at 5:00.
Supply remains an issue with the Treasury to auction 20-year bonds next week.
The 30-year Treasury bond futures remain in a broadly based congestion pattern as the main fundamental influences affecting the long end of the curve are offsetting.
June 20 S&P 500
Support 2775.00 Resistance 2828.00
June 20 U.S. Dollar Index
Support 100.120 Resistance 100.650
June 20 Euro Currency
Support 1.07750 Resistance 1.08380
June 20 Japanese Yen
Support .93250 Resistance .93770
June 20 Canadian Dollar
Support .70740 Resistance .71180
June 20 Australian Dollar
Support .6400 Resistance .6478
June 20 Thirty Year Treasury Bonds
Support 180^10 Resistance 182^0
June 20 Gold
Support 1714.0 Resistance 1738.0
July 20 Copper
Support 2.3100 Resistance 2.3650
July 20 Crude Oil
Support 25.48 Resistance 27.34
Would you like to open an account with us? Go to our interactive New Account application at Open an Account. It is fast, saves on postage and it’s green.
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.
Contact Us Today
Get free guides and special offers in the Resource Center.
© 2018 Archer Financial Services, Inc.
This is not a solicitation of any order to buy or sell, but merely a collection of information related to Archer Financial services and commodities trading provided by Archer Financial services. Any statement of facts herein contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor do they purport to be complete. No responsibility is assumed with respect to any such element, nor with respect to any expression of opinion herein contained.
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.