US Bank Earnings Propel Stock Index Futures Higher
Alan Bush of ADM Investor Services - InsideFutures.com - Fri Apr 12, 9:00AM CDT

STOCK INDEX FUTURES

U.S. stock index futures got a boost from stronger Chinese trade data, which showed a substantial recovery in exports. Exports increased 14.2% in March over the same month last year after a large decline in January and February. In addition, Chinese lending was substantially higher.

There were follow-through gains when major U.S. banks kicked off the first quarter earnings season with strong numbers.

U.S. import prices were up 0.6% in March from the previous month when economists predicted an increase of a 0.5%.

The 9:00 central time April consumer sentiment index is expected to be 98.

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.

CURRENCY FUTURES

The U.S. dollar is lower in spite of mostly bullish news, including the better than anticipated earnings reports from major U.S. banks.

The euro currency is higher after news that euro zone industrial production fell 0.2% in March, which was better than the 0.5% decrease expected by economists.

The euro is higher even though Bundesbank president Jens Weidmann said Germany's economy, the largest in the euro zone, could grow by less than 1% this year as trade disputes and Brexit uncertainty weighs on investment.

The British pound is higher after British finance minister Philip Hammond said he expects a Brexit agreement in the next couple of months.

Higher crude oil prices supported the Canadian dollar and the Australian dollar.

INTEREST RATE MARKET FUTURES

Treasury yields increased and futures declined after the stronger-than-expected increase in China's exports helped to dampen global growth fears.

Federal Reserve ChairmanJerome Powellwill speak again today on the economy at the House of Representatives Democrats three day annual retreat in Leesburg, Virginia.

Financial futures are predicting there is a 40% 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. Yesterday the probability was 49%.


SUPPORT AND RESISTANCE

June 19S&P 500

Support 2888.00 Resistance 2917.00


June 19 U.S. Dollar Index

Support 96.270 Resistance 96.850

June 19Euro Currency

Support 1.13110 Resistance 1.13940


June 19Japanese Yen

Support .89660 Resistance .90110


June 19Canadian Dollar

Support .74730 Resistance .75270

June 19Australian Dollar

Support .7118 Resistance .7203

June 19 Thirty Year Treasury Bonds

Support 146^24 Resistance 148^4

June 19Gold

Support 1291.0 Resistance 1302.0

May 19Copper

Support 2.8900 Resistance 2.9650

May 19 Crude Oil

Support 63.52 Resistance 64.65

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

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