By Alan Bush | Senior Financial Economist at ADMIS
Global stock indexes advanced, with U.S. futures pointing to a fourth week of gains in the last five weeks, due to central banks' stimulus measures and investors' optimism about the pace of the economic recovery. In addition, futures are being supported by U.S.-China trade deal optimism.
Federal Reserve Chairman Jerome Powell will speak at 12:00.
Stock index futures appear to be overperforming the news today.
In addition, the technical picture remains positive for stock index futures.
European leaders today began negotiations on a 750 billion euro ($840 billion) plan to help their economies recover. Germany and France are pushing for a deal to be completed next month. The European Commission has proposed issuing joint debt to finance the program.
New car sales in the E.U. plunged 57% in May.
The U.S. dollar appears to be bottoming and the euro currency appears to be topping, especially now that the European Central Bank is becoming more accommodative.
The Japanese yen is higher in spite of news that Japan’s May core consumer price index declined 0.2%, which compares to the expected down 0.1%.
The Canadian dollar is higher after a senior Bank of Canada official said the Canadian economy is beginning to recover.
Flight to quality longs are being liquidated in light of sharply higher stock index futures.
Other Federal Reserve speakers today are Eric Rosengren at 9:15, Randal Quarles a 11:00 and Loreta Mester at 12:00.
According to financial futures markets there is a 95.6% probability that the FOMC will leave its fed funds rate unchanged at zero to 25 basis points at its July 29 policy meeting.
September 20 S&P 500
Support 3090.00 Resistance 3146.00
September 20 U.S. Dollar Index
Support 97.050 Resistance 97.590
September 20 Euro Currency
Support 1.12080 Resistance 1.12850
September 20 Japanese Yen
Support .93450 Resistance .93870
September 20 Canadian Dollar
Support .73440 Resistance .73920
September 20 Australian Dollar
Support .6838 Resistance .6920
September 20 Thirty Year Treasury Bonds
Support 175^28 Resistance 177^12
August 20 Gold
Support 1725.0 Resistance 1758.0
September 20 Copper
Support 2.6100 Resistance 2.6700
August 20 Crude Oil
Support 38.82 Resistance 40.67
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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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