Written Commentary
STOCK INDEX FUTURES
U.S. stock index futures are mixed after yesterday’s selloff.
The House will vote today on the new $1.9 trillion stimulus plan.
January personal income increased 10.0% when a 9.4% gain was anticipated.
The 8:45 central time February Chicago PMI is predicted to be 61.
The 9:00 February consumer sentiment index is estimated to be 76.4.
Stock index futures have shown a tendency in recent months to recover from bearish news.
CURRENCY FUTURES
The euro currency is lower after European Central Bank policymakers Philip Lane and Isabel Schnabel indicated the central bank is ready to provide more support, if rising yields hurt the euro zone economic recovery.
Switzerland’s gross domestic product grew by 0.3% on the quarter in October-December 2020, easing from an upwardly revised 7.6% expansion in the previous period and surpassing market expectations of unchanged.
The British pound depreciated towards the $1.39 level on Friday, after yesterday’s near three-year high of $1.42. The recent rally made sterling the best performing G-10 currency of 2021.
The Japanese yen is lower on news that retail sales in Japan fell 2.4% year on year in January after a revised 0.2% decline in December.
INTEREST RATE MARKET FUTURES
Global bond yields declined on Friday following Thursday’s large increases.
Thursday’s advance in yields sent the 10-year notes as high as 1.61% after a very poorly received 7-year note auction.
I believe major central banks will employ tools to mitigate rising long term yields. The Reserve Bank of Australia is already acting by launching a surprise bond buying operation.
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.
