Overnight Markets And News
Sep E-mini S&Ps (ESU18 +0.22%) this morning are up +0.24% and European stocks are up +0.29% at a 2-week high as the markets await Fed Chair Powell’s speech later this morning at the Fed’s annual Jackson Hole policy symposium. Oct WTI crude oil (CLV18 +1.19%) is up +1.31% at a 2-week high, which is pushing energy stocks higher as a weaker dollar and supply concerns boost crude futures. North Sea oil supplies may be affected by a series of 12-hour strikes by workers on oil platforms operated by Total SA. Mining and raw-material stocks are high with Sep COMEX copper (HGU18 +0.89%) up +0.77% on signs of tighter copper supplies after weekly Shanghai copper inventories fell -8,486 MT to a 146,590 MT, an 8-month low. On the negative side, trade tensions may escalate between China and the U.S. after 2-days of talks in Washington between negotiators failed to make progress. A person familiar with the discussions said no further talks are scheduled and that Chinese officials raised the possibility that no further negotiations could happen until after the U.S. mid-term elections in November. Asian stocks settled mixed: Japan +0.85%, Hong Kong -0.43%, China +0.18%, Taiwan -0.50%, Australia +0.05%, Singapore -1.14%, South Korea +0.42%, India -0.22%. Strength in the yuan versus the dollar and a rally in Chinese bank stocks pushed the Shanghai Composite to a 1-week high. A rally in USD/JPY to a 2-1/2 week high spurred buying of Japanese exporter stocks, which helped lead a rally in the Nikkei Stock Index to a 2-week high.
The dollar index (DXY00 -0.28%) is down -0.28%. EUR/USD (^EURUSD +0.39%) is up +0.36%. USD/JPY (^USDJPY+0.09%) is up % at a 2-1/2 week high after weaker-than-expected Japan Jul national CPI spurred speculation the BOJ may need to maintain its yen-negative QE program.
Sep 10-year T-note prices (ZNU18 -0-035) are down -4.5 ticks.
Japan Jul PPI services rose +1.1% y/y, unch from Jun and weaker than expectations of +1.2% y/y.
Japan Jul national CPI rose +0.9% y/y, weaker than expectations of +1.0% y/y. Jul national CPI ex fresh food rose +0.8% y/y, weaker than expectations of +0.8% y/y. Jul national CPI ex fresh food & energy rose +0.3% y/y, right on expectations.
