Overnight Markets And News

Sep E-mini S&Ps (ESU18 +0.11%) this morning are up +0.22% and European stocks are up +0.65% as strength in metals prices lifts mining stocks and commodity producers. The markets also have a more optimistic tone with the U.S. and China planning for new trade talks at the end of the month. Sep COMEX copper (HGU18 +1.48%) is up +1.73% on signs of stronger demand after LME cancelled warrants, or orders to withdraw copper from LME warehouses, jumped +11,525 MT to a 1-1/4 month high of 36,050 MT. The Turkish lira is little changed as Turkey is closed for the entire week for holiday. Asian stocks settled mixed: Japan -0.32%, Hong Kong +1.41%, China +1.11%, Taiwan +0.08%, Australia +0.09%, Singapore -0.15%, South Korea +0.01%, India +0.87%. China’s Shanghai Composite rebounded from a new 2-1/3 year low and closed higher in the last hour of trade on speculation state-sponsored funds were buying stocks to stabilize the market. The Chinese yuan also climbed to a 1-week high against the dollar after the PBOC raised its daily reference rate for the yuan, which has now gained for three straight sessions against the dollar after it was announced that China was sending a trade delegation to the U.S. later this month.

The dollar index (DXY00 +0.15%) is up +0.17%. EUR/USD (^EURUSD -0.16%) is down -0.17% after the Bundesbank in its monthly report said German Q3 growth “could end up being somewhat slower than the average for the first half of the year.” USD/JPY (^USDJPY +0.07%) is up +0.10%.

Sep 10-year T-note prices (ZNU18 +0-045) are up +4 ticks.

The Bundesbank in its monthly report said that German Q3 growth “could end up being somewhat slower than the average for the first half of the year” due to weaker factory orders and as automakers adjust to new emission targets, although private consumption and a strong labor market should keep Germany on a “sound growth path.”

German Jul PPI rose +0.2% m/m and +3.0% y/y, right on expectations.

UK Aug Rightmove house prices fell -2.3% m/m and matched the Dec 2017 decline as the biggest drop in prices in 5-1/2 years.

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