Overnight Markets And News
Sep E-mini S&Ps (ESU18 +0.06%) this morning are up +0.05% and European stocks are down -0.36% in mixed trade. Strength in mining stocks and commodity producers are giving a lift to the overall market with Sep COMEX copper (HGU18 +1.84%) up +2.04% to a 1-week high. Fund buying pushed copper prices higher on speculation the Chinese government will boost economic stimulus to spur domestic demand. The Russian ruble tumbled to a 1-1/2 year low against the dollar after the U.S. announced new sanctions on Russia over the nerve-agent attack on a double agent in the UK back in March. Turkey’s lira sank to a record low against the dollar on speculation the U.S. may impose additional sanctions on Turkey as it refuses to release an American pastor. Asian stocks settled mixed: Japan -0.20%, Hong Kong +0.88%, China +1.83%, Taiwan -0.43%, Australia +0.46%, Singapore -0.40%, South Korea +0.07%, India +0.36%. Chinese stocks moved higher after the China Securities Regulatory Commission said it will revise regulations to broaden access for foreign funds and to ease access for overseas investors. Also, Chinese technology stocks rallied after China’s State Council said it will set up a group to develop the technology sector. Japanese stocks declined on economic and trade concerns after Japan Jun core machine orders posted their biggest monthly decline in 6 months. Japan’s Economy Minister Motegi will meet with U.S. Trade Representative Lighthizer for a 2-day meeting later today in Washington on high-level trade talks.
The dollar index (DXY00 +0.17%) is up +0.13%. EUR/USD (^EURUSD -0.14%) is down -0.15%. USD/JPY (^USDJPY +0.14%) is up +0.13%.
Sep 10-year T-note prices (ZNU18 +0-015) are up +1 tick.
Japan Jun core machine orders dropped -8.8% m/m, weaker than expectations of -1.0% m/m and the biggest decline in 6-months.
China Jul CPI rose +2.1% y/y, stronger than expectations of +2.0% y/y. Jul PPI rose +4.6% y/y, stronger than expectations of +4.5% y/y.
U.S. Stock Preview
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +2,000 to 220,000, previous +1,000 to 218,000) and continuing claims (expected +6,000 to 1.730 million, previous -23,000 to 1.724 million), (2) Jul PPI final demand (expected +0.2% m/m and +3.4% y/y, Jun +0.3% m/m and +3.4% y/y) and Jul PPI ex food & energy (expected +0.3% m/m and +2.8% y/y, Jun +0.3% m/m and +2.8% y/y), (3) final-Jun wholesale inventories (expected unrevised at 0.0%) and Jun wholesale trade sales (expected +0.2% m/m, May +2.5% m/m), (4) Treasury auctions $18 billion of 30-year T-bonds, (5) Chicago Fed President Charles Evans (non-voter) speaks to reporters at an event in Chicago.
