Futures Markets Simmer After Last Week’s Run-up
The futures market continues to simmer after last week’s run
up caused by the North Korean missile tests. The markets also worked to
compensate for the move caused by ADPs’ false jobs prediction, as investors gear up
for more rate hikes.
Crude oil futures fell 48 cents to $73.61, after last week’s
highs at $75.78 which were spurned on by the North Korean missile tests.Â
Investors still remain skittish about the Iran situation, despite positive steps
towards resolution made by the EU last week.
U.S. Treasuries showed little change today, ending a two-day
rally in the 10-year and 30-year notes. Friday’s jobs report showed an
unexpected slump in job growth, as well as a surprising jump in wage growth.Â
These numbers led investors to bet that the Fed would raise hikes for the 18th
straight time during August’s meeting.
The U.S. dollar gained against the Euro as investors leaned
towards further rake hikes in the U.S. Despite the jobs report which
showed slowing growth in actual jobs, wages increased by such a percentage that
further hikes seem to be inevitable.
Gold futures traded down slightly on Monday after last week’s
run-up fueled by the North Korean missile tests.
Orange juice fell nearly 6% after an Associated Press report
stated that as many as 6 million boxes of Florida oranges could be wasted this
summer due to a lack of laborers. Sugar was also down, trading lower 2.4%.
Grains traded higher across the board, with oats standing out
up 5.6% and corn up 2.8%.
Meats traded lower today, with potbellies down 1.4% and feeder
cattle down 1.5%.
Wholesale Sales And Inventories Increase In May (full
story).
A round of foreign economic reports were released
today.Â
Check them
here.
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