OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU17 +0.07%) this morning are up +0.05% as stronger-than-expected China Q2 GDP bolstered optimism in the global economic outlook. Strength in China Jun industrial production along with a faster-than-expected pace of growth in Q2 lifted commodities with Aug WTI crude (CLQ17 -0.19%) up +0.04% at a 1-week high and Sep COMEX copper (HGU17 +0.98%) up +0.89% at a 3-1/4 month high. The strength in oil and metals boosted energy and mining stocks, although gains were tempered as BlackRock fell -0.3% in pre-market trading after it reported weaker-than-expected Q2 earnings results. European stocks are down -0.10% as Brexit negotiations resumed in Brussels. Asian stocks settled mixed: Japan closed for holiday, Hong Kong +0.31%, China -1.43%, Taiwan +0.13%, Australia -0.17%, Singapore +0.33%, South Korea +0.37%, India +0.17%. Despite the strength in Chinese economic data, China’s Shanghai Composite tumbled to a 3-week low on concerns about tougher regulations proposed by Chinese President Xi Jinping at a high-level weekend conference. President Xi said the PBOC will play a stronger role in defending against risks and he called for more work on safeguarding the financial system and modernizing its regulatory framework.
The dollar index (DXY00 +0.03%) is up +0.05%. EUR/USD (^EURUSD) is down -0.04%. USD/JPY (^USDJPY) is down -0.04%.
Sep 10-year T-note prices (ZNU17 +0.06%) are up +3.5 ticks.
China Jun industrial production rose +7.6% y/y, stronger than expectations of +6.5% y/y.
China Q2 GDP rose +6.9% y/y, stronger than expectations of +6.8% y/y.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Jul Empire manufacturing index (expected -4.8 to 15.0, Jun +20.8 to 19.8), (2) USDA weekly grain export inspections, (3) USDA crop conditions and planting progress.
Notable Russell 1000 earnings reports today include: Blackrock (consensus $5.38), Netflix (0.16), JB Hunt Transport (0.92), Equity LifeStyle Products (0.81), Brown & Brown (0.47).
