Stock Index Futures Higher For the Third Day

by Alan Bush

STOCK INDEX FUTURES

U.S. stock index futures are higher, after yesterday the House of Representatives passed a $484 billion bill to boost small businesses. President Donald Trump is expected to sign the bill into law later today.

This would be the fourth economic stimulus bill passed, bringing the total amount of funds approved to an unprecedented $3 trillion.

In addition, there was support for stock index futures from higher crude oil prices, which are up for a third day.

March durable goods orders fell 14.4% when a decline of 11.7% was expected.

The 9:00 central time April University of Michigan’s consumer sentiment index is expected to be 68.

Stock index futures are performing well for the news.

CURRENCY FUTURES

The euro currency is higher despite news that German business sentiment fell to its lowest level ever recorded, according to the Ifo Institute.

The Ifo business-climate index came in at 74.3 in April from a downwardly revised 85.9 in March. Economists had forecast it to be 80.0.

Expectations declined to 69.4 from 79.5 points in March. Economists had forecast 77.0 for expectations.

The Ifo index is based on a poll of approximately 9,000 companies in manufacturing, services, trade and construction.

National inflation data in Japan showed an increase 0.4% in the year to March. The country also released the All Industry Activity Index for February, which was -0.6%.

The Canadian dollar and the Australian dollar are lower in spite of a further recovery in crude oil prices.

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

Prices are mixed.

There was only minimal support for futures when the weaker than anticipated March durable goods orders report was released.

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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.