Stock Indexes Pull Back to a Congestion Pattern

Download PDF

STOCK INDEX FUTURES

U.S. stock index futures fell due to increased investors’ concerns about the global economic recovery.

The Empire State manufacturing survey showed the general business conditions index for June was negative 0.2 when negative 30.0 was expected. The New York Fed conducts this monthly survey of manufacturers in New York state. 

The S&P 500 has retraced to its breakout level that was made in mid-May, which should hold.

CURRENCY FUTURES

The euro is higher despite news that exports from and imports into the euro zone fell at a record rate in April. The European Union’s statistics agency said the euro zone’s trade surplus fell to 2.9 billion euros from 15.5 billion euros a year earlier.

Adjusted for seasonal variations, Eurostat said exports were down 24.5% from the previous month and imports were down 13.0%.

Expectations for increased stimulus from the Bank of England supported the British pound. However, gains were limited by concerns about the U.K.-E.U. trade deal talks.

U.K. Prime Minister Boris Johnson will hold trade talks with European Commission president today after his government formally ruled out an extension to the Brexit transition period beyond December 31.

INTEREST RATE MARKET FUTURES

In light of lower prices for stock index futures today, flight to quality longs are being established.

Robert Kaplan of the Federal Reserve will speak at 10:00 central time.

Federal Reserve Chairman Jerome Powell is scheduled to appear before the Senate Banking Committee tomorrow and the House Financial Services Committee on Wednesday for the semiannual monetary policy report to Congress.

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.

Risk Warning: Investments in Equities, Contracts for Difference (CFDs) in any instrument, Futures, Options, Derivatives and Foreign Exchange can fluctuate in value. Investors should therefore be aware that they may not realise the initial amount invested and may incur additional liabilities. These investments may be subject to above average financial risk of loss. Investors should consider their financial circumstances, investment experience and if it is appropriate to invest. If necessary, seek independent financial advice.

ADM Investor Services International Limited, registered in England No. 2547805, is authorised and regulated by the Financial Conduct Authority [FRN 148474] and is a member of the London Stock Exchange. Registered office: 3rd Floor, The Minster Building, 21 Mincing Lane, London EC3R 7AG.                  

A subsidiary of Archer Daniels Midland Company.

© 2024 ADM Investor Services International Limited.

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.

Latest News & Market Commentary

Explore the latest edition of The Ghost in the Machine

Explore Now