BoE Increases Its Asset-Purchase Plan
STOCK INDEX FUTURES
Jobless claims in the week ended June 13 were 1,508,000 when 1,220,000 were expected.
The June Philadelphia Federal Reserve business outlook survey was positive 27.5 when negative 22.7 was anticipated.
The 9:00 central time May leading indicators index is expected to be up 1.7%.
A recovery from the lower morning prices is likely.
The technical picture remains positive for stock index futures.
The U.S. dollar is higher for a third day.
Euro zone banks borrowed 1.3 trillion euros ($1.46 trillion) from the European Central Bank via a long-term lending facility. The ECB has relied heavily on its long-term loan program to help businesses and households.
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 Bank of England held its regularly scheduled policy meeting today. The U.K. central bank said it increased the target for its bond-buying program to 745 billion pounds ($935.35 billion), from 645 billion pounds previously. The BoE kept its benchmark interest rate at 0.1%, which is a record low. Officials indicated they are reviewing the merits of lowering their policy rate to below zero.
The Australian dollar is lower after a report showed employment in Australia decreased 227,700 to 12,154,100 people. Full-time employment decreased 89,100 to 8,540,000 people and part-time employment decreased 138,600 to 3,614,100 people. The unemployment rate increased 0.7 pts to 7.1%.
INTEREST RATE MARKET FUTURES
Futures are higher in light of weaker stock index futures.
Federal Reserve speakers today are Neel Kashkari at 10:00, Loreta Mester at 11:15, James Bullard at 1:00 and Mary Daly at 6:00.
According to financial futures markets there is a 97.8% probability that the FOMC will leave its fed funds rate unchanged at zero to 25 basis points at its July 29 policy meeting.
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