STOCK INDEX FUTURES
U.S. stock index futures are a little lower even though Treasury Secretary Steven Mnuchin on Saturday said the U.S. and China are continuing to make progress on trade talks and are getting close to the final round of concluding issues.
Separately, there were reports that U.S, which marks a concession on a core U.S. objective for the trade talks.
The New York Federal Reserves Empire State business conditions index in April rebounded to 10.1 from a nearly two year low of 3.7 in March. Economists had expected a reading of 6.8.
Earnings remain in focus this week. The consensus estimate is for corporate earnings to fall 4.7% in the first quarter, according to FactSet.
My view is that the global reflation story remains on track and easier credit conditions from most of the worlds central banks are coming and will be the dominant fundamental that supports stock index futures in the long term.
Although stock index future are lower this morning, I expect a move to higher on the day.
The U.S. dollar is lower in spite of the stronger than anticipated New York Feds Empire State business conditions index.
The Japanese yen and the Swiss franc hit their lowest levels in almost a month as a rally in global markets reduced demand for currencies considered to be safe havens.
The Canadian dollar and the Australian dollar are higher in spite of lower crude oil prices.
INTEREST RATE MARKET FUTURES
The International Monetary Fund in its annual report on global fiscal policies singled out Germany, Korea and Australia as countries that could do more to improve the slowing global economy, while central banks, including the U.S. Federal Reserve and the European Central Bank indicated continued dovishness.
Earlier today, Chicago Federal Reserve Bank PresidentCharles Evanssaid inflation is a little weaker than he would like to see. He also said he doesnt want to see the Fed to go to a restrictive position prematurely.
At 11:00 Charles Evanswill speak about current economic conditions and monetary policy and Boston Federal Reserve Bank PresidentEric Rosengrenwill speak about the economy and monetary policy at 7:00 p.m.
Financial futures are predicting there is a 38% probability that the Federal Open Market Committee will lower its fed funds rate by 25 basis points or more at its December 11 policy meeting. On Friday the probability was 40%.
SUPPORT AND RESISTANCE
June 19S&P 500
Support 2904.00 Resistance 2920.00
June 19 U.S. Dollar Index
Support 96.330 Resistance 96.660
June 19Euro Currency
Support 1.13550 Resistance 1.13910
June 19Japanese Yen
Support .89560 Resistance .89900
June 19Canadian Dollar
Support .75000 Resistance .75380
June 19Australian Dollar
Support .7166 Resistance .7200
June 19 Thirty Year Treasury Bonds
Support 146^20 Resistance 147^8
Support 1282.0 Resistance 1298.0
Support 2.9200 Resistance 2.9550
May 19 Crude Oil
Support 63.03 Resistance 64.34
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