Overnight Markets and News
Sep E-mini S&Ps (ESU18 -0.49%) this morning are down -0.39% as ongoing global trade tensions weigh on stocks prices. Metal producers and mining stocks are weaker with Jul COMEX copper (HGN18 -0.62%) down -0.38% at a 3-month low on concern a global slowdown from ongoing trade tensions will undercut demand for industrial metals. European stocks are up +0.09% as strength in energy producers lifted the overall market with Aug WTI crude oil (CLQ18 +0.77%) up +0.86% at a new 1-month high. Weakness in European bank stocks, led by a tumble in Deutsche Bank AG to a record low, had weighed on the overall European market as the Euro Stoxx 50 fell to a 2-3/4 month low before recovering. Asian stocks settled lower: Japan -0.70%, Hong Kong -1.82%, China -1.10%, Taiwan -0.38%, Australia -0.03%, Singapore -0.80%, South Korea -0.17%, India -0.77%. China’s Shanghai Composite fell to a fresh 2-year low as trade tensions and a weaker yuan weighed on stock prices. The Chinese yuan fell to a 6-1/4 month low of 6.6183 per dollar today.
The dollar index (DXY00 +0.25%) is up +0.04%. EUR/USD (^EURUSD -0.29%) is down -0.21%. USD/JPY (^USDJPY -0.06%) is down -0.13%.
Sep 10-year T-note prices (ZNU18 +0-090) are up +8.5 ticks at a 3-week high as stock weakness boosts safe-haven demand for government debt.
China May industrial profits were up +21.1% y/y and from Jan through May are up +16.5% year-to-date y/y.
Eurozone May M3 money supply rose +4.0% y/y, stronger than expectations of +3.8% y/y.
UK Jun nationwide house prices rose +0.5% m/m and +2.0% y/y, stronger than expectations of +0.2% m/m and +1.7% y/y.
UK Jun CBI retailing reported sales unexpectedly jumped +21 to a 9-month high of 32, stronger than expectations of -1 to 10.
U.S. Stock Preview
Key U.S. news today includes: (1) Apr S&P CoreLogic composite-20 home price index (expected +0.4% m/m and +6.8% y/y, Mar +0.53% m/m and +6.79% y/y), (2) Jun Richmond Fed manufacturing index (expected -1 to 15, May +19 to 16), (3) Jun Conference Board U.S. U.S. consumer confidence index (expected unch at 128.0, May +2.4 to 128.0), (4) Treasury auctions $34 billion of 2-year T-notes, (5) Atlanta Fed President Raphael Bostic (voter) speaks at an event in Birmingham, AL, (6) Dallas Fed President Robert Kaplan (non-voter) speaks at an event in Houston, TX.
