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Indexes Likely to Recover

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All three major averages finished at record closing highs on Friday. Traders have been encouraged by the Federal Reserve, which said it doesn’t plan to pull back on supportive policies in the near term.

However, stock futures are under some pressure today with lingering concerns over the global economic growth outlook, which at least temporarily is outweighing optimism over a strong second-quarter earnings season.

The 9:00 central time June new home sales report is expected to show 800,000.

The 9:30 July Dallas Federal Reserve manufacturing survey is anticipated to be 32.0.

The fundamentals and technical aspects remain positive for stock index futures.


The U.S. dollar index is lower today but remains near a four-month high as demand for safe-haven assets remains strong.

In the weeks ahead it is likely that the flight to quality influence that the greenback has enjoyed recently will dominate over other market influences.

The euro currency is higher despite news that the Ifo business climate indicator for Germany dropped to 100.8 in July 2021, from the previous month’s two-and-a-half-year high of 101.7 and under market expectations of 102.1.

Bank of England policymaker Gertjan Vlieghe said on Monday that he believes it will remain appropriate to keep the current monetary stimulus in place for at least several quarters.


Futures are mostly higher on  prospects of slowing global economic growth.

The Treasury will auction two-year notes.

The interest rate futures markets have been telegraphing since May clues about the state of the global economy.

The U.S. Treasury yield curve has been flattening for several months. Shorter-dated yields have been steady, while longer-dated yields have declined. A flattening yield curve suggests a slower rate of economic growth in the future.

The Federal Open Market Committee will hold its regularly scheduled policy meeting on Tuesday and Wednesday. A statement  from the FOMC will be released at 1:00 on Wednesday and a press conference will be held at 1:30.

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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.

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