Good morning,
DXM0 96.425 +0.475 GCQ0 1734.3 +13.6 ESM0 3108.00 -78.00 CLN0 37.35 -2.25
Global equity futures are correcting lower again today, following yesterday afternoon’s Federal Reserve meeting, where policy was left unchanged, but Chairman Powell did toss some cold water on last Friday’s stellar employment data, acknowledging the economic recovery will take some time. Growing fears of a second wave of the coronavirus is also putting pressure on the market.
Gold prices continue to grind back up as equites correct and pandemic fears linger. If another asset meltdown were to take place, gold would be the benefactor. The Fed saying rates will stay near 0%, possibly until 2022, also supports gold prices.
Oil prices are lower today, following the DOE reporting inventories grew last week, compared to estimates for a modest decline. Production had another downtick, but that clearly didn’t help the stocks figure. Which brings into question the actual demand side of the equation.
The grain markets have the WASDE report from the USDA to contend with today. While some slight adjustments are expected, and some questions regarding exports, ethanol consumption and feed usage could get answered, the market isn’t expecting any major fireworks. Rather, most eyes appear to be fixated on the acreage report at the end of the month. Any major production revisions, and hence inventory changes, are more likely to be reflected in the July WASDE. Estimates for today’s data can be found on the current data attachment.
Initial and Continuing Jobless Claims come out shortly, along with PPI for May. Initial Claims are expected to be +1.55m vs +1.877m last week. Continuing Claims should be 20m, vs 21.487m last week.
Apologies here, but I have to cut this short today. Best of luck on all the data!
Technical Moving Averages:
Product 50 day 100 day 200 day
SN0 850.00 874.75 912.50
CN0 324.75 351.75 375.50
WN0 525.00 534.50 529.75
KWN0 473.50 475.25 465.50
MWN0 520.25 532.50 543.50
SMN0 291.5 298.9 305.9
BON0 26.87 28.33 30.20
CLN0 29.41 36.88 45.95
GCQ0 1718.4 1660.8 1591.5
LHQ0 58.245 68.415 78.290
LCQ0 94.005 98.875 105.550
KCU0 110.20 111.95 114.90
CCU0 2350 2491 2482
CTN0 56.11 60.41 63.48
SBV0 10.79 12.12 12.66
JON0 117.70 110.65 109.60
HGN0 236.80 243.95 256.90
HON0 98.30 123.06 155.03
XBN0 91.16 114.39 144.91
NGN0 1.990 2.010 2.183
Thanks,
Mike
Michael Clifford
141 W Jackson Boulevard
Ste 1065
Chicago, IL 60604
Trean Group, LLC
312-604-6404