Minutes From Recent FOMC Oct Meeting Will Be Released Today

STOCK INDEX FUTURES

U.S. stock index futures fell, as escalating political tensions between Washington and Beijing sparked fears that the two sides will not be able to reach a trade agreement soon.

The globally relatively low interest rate environment will continue to limit selling pressure when from time to time there are ramped-up geopolitical concerns.

My view remains that the global reflation scenario is on track and easier credit conditions, although likely at a slower pace, from most of the worlds central banks are coming and will be the dominant fundamental that supports stock index futures through the balance of the year.

CURRENCY FUTURES

The U.S. dollar is higher for a second day, as interest rate differential expectations remain slightly bullish on balance for the greenback.

The euro currency is lower after a report showed the German index of producer prices for industrial products in October decreased 0.6% compared with the same month last year.

Canadas consumer price index rose1.9% on a year-over-year basis in October, which matched the increase in August and in September.

INTEREST RATE MARKET FUTURES

The thirty year Treasury bond futures are higher in response to the increased political tensions between the U.S. and China, along with the bullish influence of lower stock index futures.

The minutes from the October 29-30 Federal Open Market Committee meeting will be released at 1:00 central time. The meeting's minutes may offer clues about the direction of future policy. The FOMCs next meeting will be held on December 10-11.

Financial futures markets are suggesting there is a 57% probability that the FOMC will lower its fed funds rate by 25 basis points at its July 29, 2020 policy meeting. Yesterday the probability was 52%.

Interest rate market futures are likely to trade only sideways, although the flight to quality influence is likely to reemerge from time to time, as it is today.

SUPPORT AND RESISTANCE

December 19S&P 500

Support 3101.00 Resistance 3120.00

December 19 U.S. Dollar Index

Support 97.680 Resistance 97.980

December 19Euro Currency

Support 1.10640 Resistance 1.11030

December 19Japanese Yen

Support .92150 Resistance .92480

December 19Canadian Dollar

Support .75030 Resistance .75480

December 19Australian Dollar

Support .6800 Resistance .6842

December 19 Thirty Year Treasury Bonds

Support 159^10 Resistance 160^20

December 19Gold

Support 1467.0 Resistance 1482.0

December 19Copper

Support 2.6400 Resistance 2.6700

January 20 Crude Oil

Support 54.75 Resistance 56.45

Please contact Alan for more extensive information on these markets at 312.242.7911 or via email at alan.bush@admis.com. Thank you.


Would you like to open an account with us? Go to our interactive New Account application at Open An Account. It is fast, saves on postage and its green.

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 Archer Daniels Midland Company. 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.