Written Commentary
Global Ag News for Mar 25.24
March 25, 2024
STOCK INDEX FUTURES
U.S. stock index futures extended gains on Friday.
The 8:45 central time May PMI manufacturing index is expected to be 60.5.
The 9:00 April existing home sales report is anticipated to show 6.085 million.
A congestion pattern is forming now that most likely will be followed by an upside breakout.
CURRENCY FUTURES
The U.S. dollar index fell to a four-month low in the overnight trade before a rebound.
Lower prices are likely for the greenback longer term.
The euro currency is a little lower despite news that the IHS Markit euro zone composite PMI increased to 56.9 in May, which is the highest since February 2018, from 53.8 in April and above the market consensus of 55.1.
The IHS Markit Germany manufacturing PMI fell to 64.0 in May of 2021 from 66.2 in April and below forecasts of 65.9.
The British pound in higher on news that the IHS Markit/CIPS U.K. services PMI rose to 61.8 in May 2021 from 61.0 in the previous month, but slightly below market expectations of 62.0.
The Japanese yen is higher despite news that the au Jibun Bank Japan services PMI declined to 45.7 in May, which is the 16th straight month of contraction and the steepest rate since August 2020, while the manufacturing PMI fell to 52.5, which is the lowest reading since February.
INTEREST RATE MARKET FUTURES
Futures are recovering from the lows that were made on Wednesday when the release of the minutes from the FOMC’s April policy meeting revealed policy makers were discussing when to taper their asset purchase program.
Federal Reserve speakers today are Robert Kaplan at 8:15, Mary Daly at 12:30 and Robert Kaplan at 3:55.
In my minority view, I am seeing indications that the global economy will continue to improve, but growth may not be as strong as many analysts are predicting.
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