Overnight Markets and News
Sep E-mini S&Ps this morning (ESU18 +0.15%) are up +0.18%, led by strength in new Dow component Walgreens Boots Alliance, which is up more than 2% in pre-market trading after it reported better-than-expected Q3 EPS and boosted its quarterly dividend. European stocks are down -0.61% and followed losses in Asian markets on concern an escalation of trade tensions will undercut economic growth. The ECB’s monthly report released today warned the balance of risks for global activity and trade in the short term “has worsened recently” due to the implementation of higher trade tariffs and the possibility of wider protectionist measures. Asian stocks settled mostly lower: Japan -0.01%, Hong Kong +0.50%, China -0.93%, Taiwan -0.44%, Australia +0.32%, Singapore +0.09%, South Korea -1.32%, India -0.51%. China’s Shanghai Composite fell to a new 2-year low on heightened trade risks between the U.S. and China after China Commerce Ministry spokesman Gao Feng said China will fight back with “quantitative and qualitative measures” should the U.S. roll out a new tariff list. Concern that Chinese economic growth will suffer from trade risks has undercut the yuan which fell to a 7-1/4 month low of 6.6345 against the dollar today.
The dollar index (DXY00 -0.11%) is down -0.16%. EUR/USD (^EURUSD +0.23%) is up +0.29%. USD/JPY (^USDJPY -0.01%) is down -0.03%.
Sep 10-year T-note prices (ZNU18 unch) are unchanged.
The ECB in its monthly report said, “the balance of risks for global activity and trade in the short term has worsened recently, with risks remaining skewed to the downside in the medium term. The implementation of higher trade tariffs and the possibility of wider protectionist measures represent a key risk.”
Eurozone Jun economic confidence fell -0.2 to 112.3, stronger than expectations of -0.5 to 112.0, but still a 10-month low. The Jun business climate indicator fell -0.05 to 1.39, weaker than expectations of -0.5 to 1.40.
German Jul GfK consumer confidence was unch at 10.7, stronger than expectations of -0.1 to 10.6.
Japan May retail sales fell -1.7% m/m, weaker than expectations of -0.8% m/m and the biggest decline in 1-3/4 years.
