Overnight Markets And News

Sep E-mini S&Ps (ESU18 -0.31%) this morning are down -0.20% and European stocks are down -0.37% on global trade concerns after Reuters reported that China asked the World Trade Organization (WTO) for authorization to impose trade sanctions on the U.S. Losses in European stocks were contained after the German ZEW economic confidence index unexpectedly rising for a second month. Another positive is signs of progress in EU and U.S. trade talks after the Trump administration said it will seek fast-track approval from Congress for a trade deal being negotiated with the EU. Asian stocks settled mixed: Japan +1.30%, Hong Kong -0.72%, China -0.18%, Taiwan +0.25%, Australia +0.62%, Singapore -0.35%, South Korea -0.42%, India -1.34%. Concerns bout escalation of trade tensions between the U.S. and China weighed on the yuan and Chinese stocks as the yuan fell to a 2-wek low against the dollar as the Shanghai Composite tumbled to a 2-1/2 year low. Japanese stocks rallied after the yen weakened against the dollar for a third day, which boosted Japanese exporter stocks.

The dollar index (DXY00 +0.09%) is up +0.11%. EUR/USD (^EURUSD -0.06%) is down -0.09%. USD/JPY (^USDJPY+0.20%) is up +0.22%.

Dec 10-year T-note prices (ZNZ18 -0-045) are down -5 ticks at a 1-month low as supply pressures weigh on T-notes with the Treasury set to auction $73 billion of T-notes and T-bonds this week.

The German Sep ZEW survey expectations of economic growth unexpectedly rose +3.4 to 76.0, stronger than expectations of -0.6 to 72.0.

The UK Jul ILO unemployment rate remained unch at 4.0%, right on expectations and the lowest in 43-1/2 years.

UK Jul average weekly earnings rose 2.6% 3-mo avg/year-over-year, stronger than expectations of +2.4% 3-mo avg/year-over-year. Jul average weekly earnings ex-bonus rose +2.9% 3-mo avg/year-over-year, stronger than expectations of +2.8% 3-mo avg/year-over-year.

U.S. Stock Preview

Key U.S. news today includes: (1) Jul JOLTS job openings (expected +13,000 to 6.675 million, Jun +3,000 to 6.662 million), (2) Jul wholesale trade sales (expected +0.1% m/m, Jun -0.1%) and final-Jul wholesale inventories (expected unrevised at +0.7% m/m), (3) Treasury auctions $35 billion 3-year T-notes.