Overnight Markets And News

Sep E-mini S&Ps (ESU18 +0.37%) this morning are up +0.37% and European stocks are up +0.66% as strength in technology stocks lifts the overall market ahead of the unveiling Wednesday of Apple’s newest iPhone. Stocks also moved higher as the U.S. failed to impose new tariffs on China over the weekend after President Trump had signaled he’s ready to target more Chinese goods for new tariffs. Asian stocks settled mixed: Japan +0.30%, Hong Kong -1.33%, China -1.21%, Taiwan -1.12%, Australia -0.03%, Singapore -0.43%, South Korea +0.29%, India -1.22%. Japanese stocks moved higher after Japan Q2 GDP was revised upward to its fastest pace of growth in more than 2-years. China’s Shanghai Composite fell to a 3-week low and the Chinese yuan tumbled to a 2-week low on concern about escalation of China/U.S. trade tensions after President Trump said he’s ready to impose an additional $267 tariffs of Chinese goods on short notice on top of the $200 billion in imports he’s already considering.

The dollar index (DXY00 -0.03%) is unchanged. EUR/USD (^EURUSD +0.19%) is up +0.19%. USD/JPY (^USDJPY +0.10%) is up +0.11%.

Dec 10-year T-note prices (ZNZ18 +0-010) are little changed, up +0.5 of a tick.

Eurozone Sep Sentix investor confidence fell -2.7 to 12.0, weaker than expectations of -0.4 to 14.3.

Boston Fed President Rosengren said with unemployment low and likely to keep falling, and with inflation at the Fed’s 2.0% target and likely to rise, “I don’t see any reason why we wouldn’t continue to gradually increase interest rates.”

The China Aug trade balance unexpectedly shrunk to a surplus of +$27.91 billion, narrower than expectations of +31.00 billion. Aug exports rose +9.8% y/y, weaker than expectations of +10.0% y/y, and Aug imports rose +20.0% y/y, stronger than expectations of +17.7% y/y.

China Aug CPI rose +2.3% y/y, stronger than expectations of +2.1% y/y and the fastest pace of increase in 6-months. Aug PPI rose +4.1% y/y, stronger than expectations of +4.0% y/y.

Japan Q2 GDP was revised upward to +3.0% (q/q annualized), stronger than expectations of +2.6% (q/q annualized) and the fastest pace of expansion since Q1 of 2016.