Overnight Markets and News
Sep E-mini S&Ps (ESU18 +0.35%) this morning are up +0.29% and European stocks are up +1.05% as global stocks rebound from this week’s declines. European markets and EUR/USD received a boost after EU leaders agreed on a migration package as members agreed to increase border security, set up holding centers to handle asylum seekers, and to speed up the process of determining whether people have the right to asylum. The deal eases a standoff between Italy and the rest of the EU. Also, strength in the German economy lifted equity prices after German unemployment fell for the 12th consecutive month in June. Stock prices fell back from their best levels after Axios reported that U.S. President Trump said he wants to withdraw the U.S. from the World Trade Organization. Asian stocks settled mostly higher: Japan +0.15%, Hong Kong +1.81%, China +2.17%, Taiwan +1.71%, Australia -0.33%, Singapore +0.34%, South Korea +0.47%, India +1.10%. Chinese stocks rose, and the yuan strengthened for the first time this week after the PBOC said it will use comprehensive policy tools to keep economic developments steady and stabilize market expectations. Japanese stocks moved higher on stronger-than-expected Japanese economic data on May industrial production and a decline in Japan’s jobless rate to a 25-1/2 year low. Japanese exporters also moved higher after USD/JPY climbed to a 2-week high.
The dollar index (DXY00 -0.61%) is down -0.51%. EUR/USD (^EURUSD +0.72%) is up +0.71%. USD/JPY (^USDJPY +0.14%) is up +0.14% at a 2-week high.
Sep 10-year T-note prices (ZNU18 +0-010) are up +0.5 of a tick.
Eurozone Jun CPI rose +2.0% y/y, right on expectations and matched Feb 2017 as the biggest increase in 5-1/2 years. Jun core CPI rose +1.0% y/y, right on expectations.
German Jun unemployment fell -15,000 to 2.342 million, stronger than expectations of -8,000. The Jun unemployment rate was unch at a record low of 5.2% (data from 1990), right on expectations.
The Japan May jobless rate unexpectedly fell -0.3 to a 25-1/2 year low of 2.2%, better than expectations of no change at 2.5%. The May job-to-applicant ratio rose +0.01 to a 44-1/3 year high of 1.60, stronger than expectations of no change at 1.59.
