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Alan has been a commodity analyst since 1976, focusing on the fundamental and technical aspects of precious metals, stock index, interest rate and foreign currency markets. He has authored several articles for Futures magazine and Stocks Futures and Options magazine. Alan served on the faculty of Oakton College as instructor of a course entitled “Principles of Technical Analysis.” He has been interviewed on many national television programs, appearing on the Nightly Business Report, CNBC, CNN Moneyline, Reuters Television and Web FN. In addition, he has been quoted in The Wall Street Journal, USA Today, The Bond Buyer and the Chicago Tribune and has been regularly interviewed on Chicago’s WMAQ radio business reports. Alan is currently the Senior Financial Economist with ADM Investor Services, Inc.
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STOCK INDEX FUTURES
U.S. stock index futures are lower over concerns about the state of the global economy. There was a partial recovery when it was reported that the June producer price index was negative 0.2% when an increase of 0.4% was expected. On the year, the producer price index was negative 0.8% when negative 0.4% was anticipated.
Some attention will shift to the second-quarter earnings season, which will begin with reports from big banks on Tuesday.
Stock index futures continue to perform well for the news.
Also, the technical outlook remains positive.
The U.S. dollar pushed higher in the early European trade, helped by its safe-haven status.
The British pound is lower after the U.K. said talks with the European Union on their post-Brexit relationship continued to make little progress as both sides ramped up preparations for their final separation at the end of the year. A U.K. government spokesperson said after the latest round of discussions, “Significant differences still remain between us on a number of important issues.”
INTEREST RATE MARKET FUTURES
Lower stock index futures and fears of slowing growth in the global economy supported the interest rate futures market.
There was an additional boost when the weaker than predicted U.S. producer price index was released.
The yield on the 30-year Treasury bond fell to 1.256%, which is its lowest level since April 29, and the yield on the 10-year Treasury note hit 0.578%, its lowest since April 21.
According to financial futures markets there is a 93.4% probability that the Federal Open Market Committee will leave its fed funds rate unchanged at zero to 25 basis points at its July 29 policy meeting.
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