OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU16 -0.03%) are little changed, down -0.01%, as a nearly 2% loss in Apple in pre-market trading limits the upside in U.S. stocks. Apple retreated after it was ordered to pay back $14.5 billion when the European Commission said Ireland illegally slashed Apple’s tax bill. European stocks are up +0.85% at a 2-week high led by gains in bank stocks and with strength in European exporters as EUR/USD tumbled to a 2-week low. Gains in European equities were limited as mining stocks fell after the price of copper (HGU16 +0.17%) dropped -0.02% to a 2-1/4 month low. Asian stocks settled mostly higher: Japan -0.07%, Hong Kong +0.55%, China +0.15%, Taiwan unch, Australia +0.17%, Singapore -0.04%, South Korea +0.39%, India +1.59%. Japanese stocks closed lower, despite a rally in USD/JPY to a 3-week high, after stronger-than-expected data on consumer spending and the labor market reduced the chances of additional BOJ easing.

The dollar index (DXY00 +0.20%) is up +0.22% at a 2-week high. EUR/USD (^EURUSD) is down -0.20% at a 2-week low. USD/JPY (^USDJPY) is up +0.43% at a 3-week high.

Sep T-note prices (ZNU16 -0.07%) are down -3.5 ticks on hawkish comments from Fed Vice Chair Fischer who said next month’s interest rate decision by the FOMC is not necessarily “one and done.”

Fed Vice Chair Fischer said the U.S. is close to full employment and that next month’s interest rate decision is not necessarily “one and done.” He added that the Fed “can choose the pace” of rate increases based on the economic data.

Eurozone Aug economic confidence fell -1.0 to 103.5, weaker than expectations of -0.5 to 104.1 and the lowest in 5 months.

The Japan Jul jobless rate unexpectedly fell -0.1 to 3.0%, stronger than expectations of no change at 3.1% and the lowest in 21 years.

Japan Jul retail sales of +1.4% m/m and -0.2% y/y was stronger than expectations of +0.8% m/m and -0.9% y/y.