STOCK INDEX FUTURES   

Prices are lower after one of the three party leaders in support of the Greek government said he is now against the newest austerity proposals. Yesterday, there were reports that Greek politicians had reached an austerity deal.

Some of the pressure on futures was due to news that China's exports and imports declined more than forecast in January and were the first declines in two years.

The 8:55 central time, February preliminary University of Michigan confidence index is expected to be 74.8.

At 11:30, Federal Reserve Chairman Bernanke will speak on the housing situation in Florida and at 11:50, Federal Reserve Bank of Cleveland President Pianalto will speak on housing.

According to Thomson Reuters data, of the 339 corporations in the S&P 500 that have reported fourth quarter results, 63% of them have beat analysts' estimates.

There are growing concerns that growth in the global economy is slowing.

CURRENCY FUTURES  

The December U.S. trade deficit was 48.8 billion, which compares to the estimate of a $48.5 billion deficit.

The euro is sharply lower after one of the three party leaders, in support of the Greek government, said he is now against the newest austerity proposals. It was just yesterday that Greek Prime Minister Papademos said the leadership of the three government supportive parties had reached an austerity budget accord that would pave the way for additional financial support from the European Union. 

A spokesman for the European Union said, "no disbursement without implementation."

Greek unions continue to strike to protest proposed new austerity measures. Political pressure on the Greek government was ramped up when German Finance Minister Wolfgang Schaeuble said Greece is currently not reaching their debt cutting targets.

Our analysis indicates the euro zone economy will enter into recession and the value of the euro will decline against the U.S. dollar in the long term.  

INTEREST RATE MARKET FUTURES  

Prices are higher after the European Union withheld rescue funds from Greece, while the Greek government attempts to hammer out a new austerity package.

The 1:00 January Treasury monthly budget statement is anticipated to show a $34 billion deficit.

In the longer term, Treasury futures are going to be supported by a variety of flight to quality influences, including the continuing tensions in the Middle East, increasing prospects of a recession in the euro zone, a trend toward weaker economic data from China, along with fears that the Chinese economy is headed for a hard landing.

Expect Treasury futures to trade higher from current levels.

For more marketplace information, I can be reached at 312.242.7911 or via e-mail at alan.bush@archerfinancials.com.

Futures and options trading involve significant risk of loss and may not be suitable for everyone. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. The views and opinions expressed in this letter are those of the author and do not reflect the views of ADM Investor Services, Inc. or its staff.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright © ADM Investor Services, Inc.