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NASDAQ Futures at New Record High

By Alan Bush | Senior Financial Economist at ADMIS   

 

STOCK INDEX FUTURES

U.S. stock index futures are higher, including new record highs for NASDAQ futures, due to a more optimistic tone to the U.S.-China trade situation.

In addition, there is ongoing support from global central banks' stimulus measures and investors' optimism about the pace of the global economic recovery. 

The 8:45 central time June PMI composite flash is expected to be 45. 

The 9:00 May new home sales report is anticipated show 630,000 and the 9:00 June Richmond Federal Reserve manufacturing index is estimated to be negative 5.

The technical situation remains positive for stock index futures.

CURRENCY FUTURES

The U.S. dollar is lower, and the euro currency is higher. 

Some of the gains in the euro were linked to the stronger than predicted PMIs. The German June manufacturing PMI flash was 44.6 when 41.0 was predicted.

The euro is higher in spite of news that European car sales are estimated to drop by a record 25% this year. Sales in the European Union are expected to decline to 9.6 million vehicles from 12.8 million last year, according to the European Automobile Manufacturers Association. 

In spite of today’s price moves, 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 British pound is higher after the U.K. PMIs for June all came in stronger than economists were expecting. 

INTEREST RATE MARKET FUTURES 

Futures are lower at the long end of the curve in light of higher stock index futures, a more optimistic tone to the U.S.-China trade situation and stronger than expected PMIs in Europe. 

St. Louis Federal Reserve President James Bullard will speak at 12:00.
The Treasury will auction two-year notes today.

According to financial futures markets there is a 95.6% probability that the Federal Open Market Committee will leave its fed funds rate unchanged at zero to 25 basis points at its July 29 policy meeting.

SUPPORT & RESISTANCE

September 20 S&P 500
Support    3057.00     Resistance    3150.00 

September 20 U.S. Dollar Index
Support    96.380        Resistance    97.250

September 20 Euro Currency
Support    1.12500      Resistance    1.13680 

September 20 Japanese Yen
Support    .93330         Resistance    .94210

September 20 Canadian Dollar
Support    .73640          Resistance    .74220 

September 20 Australian Dollar
Support    .6856            Resistance    .6984

September 20 Thirty Year Treasury Bonds
Support    176^8           Resistance    177^30

August 20 Gold
Support    1756.0          Resistance    1789.0 

September 20 Copper
Support    2.6250          Resistance     2.6800 

August 20 Crude Oil
Support   39.60              Resistance    41.88

 



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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