OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU17 +0.25%) this morning are up +0.24 and European stocks are up +0.29% ahead of speeches later today from Fed Chair Yellen and ECB President Draghi at the Kansas City Fed’s annual symposium in Jackson Hole, WY. A +0.43% rally in Sep COMEX copper (HGU17 +0.53%) to a new 2-3/4 year nearest-futures high is boosting mining stocks and is leading the overall market higher. Signs of tighter copper supplies has spurred fund buying of copper after LME copper inventories today fell -4,225 MT to 240,825 MT, a 5-1/2 month low. Oct ROB gasoline (RBV17 +2.07%) is up +1.69% at a 4-1/2 month high after Hurricane Harvey strengthened into a Category 2 hurricane and threatens the U.S. Gulf Coast, home to as much as half of the nation’s refining capacity. A positive for European stocks was the stronger-than-expected German corporate confidence as the German Aug IFO business climate fell less than expected. Asian stocks settled mostly higher: Japan +0.51%, Hong Kong +1.20%, China +1.83%, Taiwan +0.25%, Australia -0.03%, Singapore -0.38%, South Korea +0.15%, India closed for holiday. China’s Shanghai Composite rallied to a 1-1/2 year high on strong quarterly earnings from Chinese companies along with optimism the government will push ahead with plans to make enterprises more efficient. Deflation concerns remain in Japan after Japan’s Jul national CPI ex-fresh food rose +0.5% y/y, right on expectations and the fastest pace of increase n 2-1/3 years, but still well below the BOJ’s 2.0% target.
The dollar index (DXY00 -0.13%) is down -0.13%. EUR/USD (^EURUSD) is up +0.19%. USD/JPY (^USDJPY) is up +0.11%.
Sep 10-year T-note prices (ZNU17 -0.04%) are down -1 tick.
Japan Jul national CPI rose +0.4% y/y, right on expectations. Jul national CPI ex fresh food rose +0.5% y/y, right on expectations and the fastest pace of increase n 2-1/3 years. Jul national CPI ex fresh food & energy rose +0.1% y/y, right on expectations.
