Written Commentary
ADM Reports Q1 2024 Results
April 30, 2024
by Alan Bush,
STOCK INDEX FUTURES
S&P 500 futures advanced to the highest level since March 9 in the overnight trade. However, prices are lower this morning.
Jobless claims in the week ended April 25 were 3.84 million when 3.50 million were expected.
The 8:45 central time April Chicago PMI is anticipated t be 37.9.
Although stock index futures are lower today, in recent weeks they have shown a tendency to perform well for the news.
CURRENCY FUTURES
The U.S. dollar is lower for a fifth day after falling under an eight-day uptrend line on Monday.
Some of today’s pressure on the greenback is linked to yesterday’s dovish comments from Federal Reserve Chairman Jerome Powell.
The euro currency is lower after the Governing Council of the European Central Bank at its monetary policy meeting today decided to leave the interest rates on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility unchanged at 0.00%, 0.25% and -0.50%, respectively, as anticipated.
The ECB said it would launch new long-term loans for eurozone banks, reduce the interest rate on an existing batch of loans, and stand available to increase purchases under a recently announced bond-buying program.
Eurostat, the statistical office of the European Union, said the euro area seasonally adjusted unemployment rate in March was 7.4%, which is up from 7.3% in February 2020.
The Japanese yen is lower despite a report that showed Japan’s March industrial output fell 3.7% on the month when a decline of 5.1% was estimated.
In the longer-term analysis there are no major disparities in interest rate differential expectations in the currency markets with all the major central banks adding more accommodation to their banking systems in one form or another.
INTEREST RATE MARKET FUTURES
The thirty-year Treasury bond futures are higher but showed little reaction to the jobless claims report.
The Federal Reserve kept interest rates unchanged on Wednesday but expressed a willingness to do more to support the economy if needed.
Federal Reserve Chairman Jerome Powell said, “It may well be the case that the economy will need more support from all of us if the recovery is to be a robust one.” He also said more spending will be needed from Congress.
Fed Chair Powell reiterated the Fed’s commitment to using a full range of tools.
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.
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.
