Written Commentary
Ag Market View for Dec 11.24
December 11, 2024
STOCK INDEX FUTURES
NASDAQ futures hit a record high in the overnight trade.
However, major stock index futures are mixed to lower this morning on limited news.
There are no major economic reports scheduled for today.NASDA
The fundamental and technical aspects remain supportive for stock index futures.
CURRENCY FUTURES
The U.S. dollar is higher for a second day, moving away from a near one-month low hit last week.
The euro currency is lower on news that the ZEW Indicator of Economic Sentiment for Germany declined to 26.5 in September from 40.4 in August, and was below market forecasts of 30.0. The gauge declined for the fourth consecutive month to the lowest level since March 2020. The assessment of the economic situation in Germany however, improved to 31.9 from 29.3 in August. This reading compares with economists’ forecast of 33.0.
Euro zone quarterly economic growth was revised higher to 2.2% in the second quarter of 2021, following two consecutive periods of contraction.
The European Central Bank will hold its next policy meeting on September 9. It is likely that the central bank will continue to communicate that monetary policy will remain loose for longer despite calls for the ECB to scale-back its asset purchase program.
The Reserve Bank of Australia kept its cash rate unchanged at a record low of 0.1% at its policy meeting today, as widely expected. The RBA confirmed plans to reduce the purchases of government bonds to A$4.0 billion a week until at least mid-February 2022. In addition, the central bank said GDP is expected to fall materially in the third quarter, and the jobless rate will likely move higher in the coming months. Policymakers reaffirmed their commitment to maintain supportive monetary conditions and not increase the cash rate until inflation is within the 2.0% to 3.0% target range, which is a condition that will not be reached before 2024.
INTEREST RATE MARKET FUTURES
The Treasury will auction 52-week bills and three-year notes today.
The 30-year Treasury bond futures remain in a two-month trading range, but are likely to ultimately break out to the upside, as the rate of growth in the global economy slows.
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.
