OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU17 -0.22%) this morning are down -0.33% and European stocks are unchanged. Geopolitical tensions from North Korea are weighing on U.S. equities after the Asia Business Daily reported that North Korea was preparing to fire an ICBM missile by Saturday. The U.S. said it would seek the strongest possible sanctions against North Korea and wants the United Nations Security Council to vote on them Sep 11, although Russia and China said they will oppose the new sanctions. President Trump agreed to support billions of dollars in new weapons sales to South Korea after North Korea’s largest nuclear test on Sunday. The escalation of North Korean tensions has fueled safe-haven demand for precious metals with Dec COMEX gold (GCZ17 +0.28%) up +0.54% at an 11-month high. Strength in mining stocks has helped European equities recover earlier losses as Dec COMEX copper (HGZ17 +1.43%) climbs +1.48% to a 3-year high. Asian stocks settled mixed: Japan -0.63%, Hong Kong unch, China +0.14%, Taiwan +0.45%, Australia +0.07%, Singapore +0.63%, South Korea -0.04%, India +0.34%. Chinese stocks shook off concerns about North Korea as the Shanghai Composite rallied to a new 1-1/2 year high after gains in metals prices boosted commodity producers and led the overall market higher.
The dollar index (DXY00 -0.05%) is down -0.15%. EUR/USD (^EURUSD) is down -0.02%. USD/JPY (^USDJPY) is down -0.36%.
Dec 10-year T-note prices (ZNZ17 +0.17%) are up +7 ticks.
The Eurozone Sep Sentix investor confidence unexpectedly rose +0.5 to 28.2, stronger than expectations of -0.7 to 27.0.
Eurozone Jul PPI was unch m/m and up +2.0% y/y, weaker than expectations of +0.1% m/m and +2.1% y/y with the +2.0% y/y gain the smallest year-on-year increase in 7 months.
Eurozone Jul retail sales fell -0.3% m/m, right on expectations and the largest decline in 16-months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Fed Governor Lael Brainard speaks at the Economic Club of New York, (2) Jul factory orders (expected -3.2%, Jun +3.0% and -0.2% ex-transportation), (3) Minneapolis Fed President Neel Kashkari speaks at a town hall event at the University of Minnesota in Minneapolis, Q&A with audience, (4) Dallas Fed President Robert Kaplan speaks to the Dallas Business Club, (5) USDA weekly grain export inspections, (6) USDA crop conditions and progress report.
