Written Commentary
STOCK INDEX FUTURES
Stock index futures are mostly higher, extending gains from the previous session, due to a general improvement in investors’ mood.
Personal income in February was down 7.1% , which compares to the expected decline of 7.2%.
Personal consumption expenditures in February fell 1.0% when a decline of 0.7% was anticipated.
The 9:00 central time March consumer sentiment index is predicted to be 83.3.
Stock index futures are performing well for the news.
CURRENCY FUTURES
Yesterday the U.S. dollar advanced to its highest level since November. The greenback is likely to remain firm over the near term against the euro currency as traders remain cautious due to increasing coronavirus infections and restrictions in Europe.
The Ifo institute’s business climate indicator for Germany improved to 96.6 in March 2021, which is the highest level since June 2019. This was above market expectations of 93.2.
The British pound advanced on news that retail sales in the U.K. jumped 2.1% month-over-month in February of 2021, following an 8.2% plunge in January.
INTEREST RATE MARKET FUTURES
The 30-year Treasury bond futures fell below a six-day uptrend line.
The yield on the benchmark 10-year Treasury note was higher at 1.68% today, after a relatively weak 7-year auction the day before that saw demand improving from last month but was below the recent auction average. Earlier in the week, both the 2-year and 5-year note auctions saw solid demand.
Federal Reserve Chairman Jerome Powell this week continued to play down inflation risks and reiterated the U.S. economic recovery is strengthening but remains far from complete.
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.
