STOCK INDEX FUTURES
Stock index futures are higher. Traders have been encouraged by the Federal Reserve, which said it doesn’t plan to pull back on supportive policies in the near term.
Retail sales in June increased 0.6% when a decline of 0.4% was expected.
The 9:00 May business inventories report is anticipated to show a 0.4% increase and the 9:00 July consumer sentiment index is predicted to be 87.0.
The technical aspects remain positive for stock index futures.
CURRENCY FUTURES
The U.S. dollar index was supported by the stronger than estimated U.S. retail sales report.
The euro currency is a little lower on news that euro zone exports fell in May for the fifth consecutive month. The European Union’s statistics agency said the currency area’s exports fell by 1.5% in May compared with April, while imports increased 0.7%.
The Bank of Japan left its key short-term interest rate unchanged at -0.1% and kept the target for the 10-year Japanese government bond yield at near 0% during its July policy meeting by an 8-1 vote, as widely predicted. In a quarterly outlook report, the central bank lowered its projected rate of GDP growth for the current fiscal year to 3.8% from earlier forecasts of 4.0% made in April.
The Canadian dollar is higher on news that monthly housing starts increased more than expected. Housing starts for all areas in Canada were 282,070 units in June 2021, beating market expectations of 270,000 units.
INTEREST RATE MARKET FUTURES
Futures are mostly lower in response to the stronger than estimated U.S. retail sales report.
The U.S. Treasury yield curve has been flattening since May with shorter-dated yields increasing to reflect higher rate expectations, while longer-dated yields fell because higher interest rates in the near term would likely mean a slower rate of growth in the future.
The interest rate futures markets have been telegraphing for several months clues about the state of the global economy.
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.
© 2021 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
ADM & Industry News
Wkly Futures Market Summary For 10.7.24
October 7, 2024
Crude Trades to Highest Level Since Aug 13
October 7, 2024