Upside Momentum For Stock Index Futures

STOCK INDEX FUTURES

Stock index futures are sharply higher with NASDAQ futures advancing to a new record high.

The 8:45 central time June PMI services index is expected to be 46.7 and the 9:00 June Institute for Supply Management non-manufacturing index is anticipated to be 50.1.

Stock index futures continue to exhibit upside momentum and are overperforming the news.

CURRENCY FUTURES

The U.S. dollar is lower due to mostly stronger economic reports overseas. A partial recovery in the greenback is likely from the morning lower prices.

The euro currency is higher after a report showed retail sales in the euro zone rebounded more strongly than estimated in May. The European Union’s statistics agency said the volume of retail sales across the currency area was 17.8% higher than in April, which is a record advance. The rebound was larger than the 14% gain that economists had predicted.

The euro currency is higher despite news that German manufacturing orders increased 10.4% in May. Economists expected orders to grow at a higher rate of 15% from the previous month.

A strong rebound in U.K. construction output during June supported the British pound.

Higher crude oil prices underpinned the “commodity currencies,” the Canadian dollar and the Australian dollar. 

INTEREST RATE MARKET FUTURES

Flight to quality longs are being liquidated in light of substantially higher stock index futures.

There are no major Federal Reserve speakers scheduled for today.

According to financial futures markets there is a 96.7% probability that the Federal Open Market Committee will leave its fed funds rate unchanged at zero to 25 basis points at its July 29 policy meeting.

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