Upward Momentum Continues For Stock Index Futuers
STOCK INDEX FUTURES
June S&P 500 futures advanced to their highest level since March 6 and NASDAQ futures are at their best levels since February 21.
There are no major economic reports scheduled for today.
Stock index futures have been performing well in spite of a variety of old and new geopolitical concerns.
Last week the U.S. dollar broke out to the downside and is now at its lowest level since March 16.
The euro currency is higher, reflecting optimism over prospects of an E.U. recovery plan.
The European Central Bank is expected to expand its bond purchasing program when its governing council meets on June 4.
The British pound hit its highest level in over a month against the U.S. dollar on speculation that this week’s Brexit talks may start to yield progress.
The pound is higher despite news that U.K. house prices fell 1.7% over the month in May, which is the largest monthly decline since February 2009. As a result, the annual pace of house price growth slowed to 1.8% from 3.7% in April.
Higher crude oil prices supported the Canadian dollar and the Australian dollar.
The Reserve Bank of Australia left its policies unchanged at a board meeting today. The RBA board kept the official cash rate steady at 0.25% and maintained its 3-year bond yield target at the same level. RBA Governor Philip Lowe said, “It is possible that the depth of the downturn will be less than earlier expected.”
In spite of the ongoing geopolitical tensions, there appears to be no flight to quality buying coming into the safe haven currencies, which are the U.S. dollar, the Japanese yen, and the Swiss franc.
The only flight to quality vehicle that is higher is gold.
INTEREST RATE MARKET FUTURES
There appears to be no flight to quality buying today.
The next Federal Open Market Committee meeting is scheduled for June 9-10. According to financial futures markets there is a 98.6% probability that the FOMC will leave its fed funds rate unchanged at zero to 25 basis points.
The thirty-year Treasury bond futures are in a broadly based congestion pattern, as the main fundamental influences are offsetting.
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 information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM. The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared. 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.