Overnight Markets And News

Sep E-mini S&Ps (ESU18 +0.01%) this morning are down -0.03% and European stocks are down -0.02% at a new 4-month low on concern about escalation of China/U.S. trade tensions if the U.S. goes ahead with its planned tariffs on an additional $200 billion of Chinese goods. Losses were limited on a rebound in emerging market currencies that has eased contagion concerns after South Africa’s rand rose and the Turkish lira climbed to a 3-session high against the dollar. Gains in mining stocks and raw-material producers are another positive for the overall market with Dec COMEX copper (HGZ18 +1.69%) up +1.76%. Copper prices rallied on signs of tighter supplies after LME copper inventories tumbled -7,750 MT to a 3-week low of 254.750 MT. Asian stocks settled mostly lower: Japan 0.41%, Hong Kong -0.99%, China -0.47%, Taiwan -0.64%, Australia -1.12%, Singapore -0.27%, South Korea -0.23%, India +0.59%. Asian stock markets retreated, with China’s Shanghai Composite and Japan’s Nikkei Stock Index both falling to 2-week lows, on concern President Trump may go ahead with planned tariffs on another $200 billion of Chinese goods. Japanese stocks also fell, as airline stocks and utilities sold-off, after a powerful 6.7 magnitude earthquake in the northern Japanese island of Hokkaido knocked out power to more than 5 million people.

The dollar index (DXY00 -0.09%) is down -0.08%. EUR/USD (^EURUSD -0.02%) is down -0.01%. USD/JPY (^USDJPY-0.22%) is down -0.22%.

Dec 10-year T-note prices (ZNZ18 +0-005) are up +1 tick.

German Jul factory orders unexpectedly fell for a second month as they declined -0.9% m/m, weaker than expectations of +1.8% m/m.

U.S. Stock Preview

Key U.S. news today includes: (1) Jul Challenger job cuts (Jun -4.2% y/y), (2) Aug ADP employment (expected +200,000, Jul +219,000), (3) weekly initial unemployment claims (expected unchanged at 213,000, previous +3,000 to 213,000) and continuing claims (expected +12,000 to 1.720 million, previous -19,000 to 1.708 million), (3) Q2 non-farm productivity (expected revised up +0.1 to 3.0%) and Q2 unit labor costs (expected unrevised at -0.9%), (4) Aug ISM non-manufacturing PMI (expected +1.1 to 56.8, Jul -3.4 to 55.7), (5) Jul factory orders (expected -0.6%, Jun +0.7% and +0.4% ex transportation), (6) New York Fed President John Williams (voter) discusses the regional and national economy at an event in Buffalo, New York, (7) EIA weekly Petroleum Status Report.