Overnight Markets And News

Jun E-mini S&Ps (ESM18 +0.37%) this morning are up +0.35% on strength in energy stocks as Jun WTI (CLM18+1.15%) climbs +0.93% to a 3-1/2 year high. Crude oil prices continue to rally on speculation President Trump will decide by May 12 to pull out of the Iran nuclear deal and re-impose sanctions on Iran, which would take their crude oil exports out of the global market. European stocks are up +0.06%, although gains were limited after German Mar factory orders unexpectedly declined and after the Eurozone May Sentix investor confidence unexpectedly fell to a 15-month low. Asian stocks settled mixed: Japan -0.03%, Hong Kong +0.23%, China +1.48%, Taiwan +0.72%, Australia +0.36%, Singapore -0.35%, South Korea closed for holiday, India +0.84%. China’s Shanghai Composite rallied to a 3-week high, led by strength in consumer stocks, and Japan’s Nikkei Stock Index closed slightly lower after Friday’s decline in USD/JPY to a 1-1/2 week low undercut Japanese exporter stocks with the stronger yen.

The dollar index (DXY00 +0.16%) is up +0.29%. EUR/USD (^EURUSD -0.42%) is down -0.35%. USD/JPY (^USDJPY+0.20%) is up +0.15%.

Jun 10-year T-note prices (ZNM18 -0-035) are down -3 ticks.

The Eurozone May Sentix investor confidence unexpectedly fell -0.4 to a 15-month low of 19.2, weaker than expectations of +1.4 to 21.0.

German Mar factory orders unexpectedly fell -0.9% m/m, weaker than expectations of +0.5%.

U.S. Stock Preview

Key U.S. news today includes: (1) Atlanta Fed President Raphael Bostic (voter) delivers welcoming remarks at the Atlanta Fed’s Financial Markets Conference, (2) USDA weekly grain export inspections, (3) Richmond Fed President Tom Barkin (voter) speaks in a moderated Q&A at George Mason University, (4) Mar consumer credit (expected +$16.0 billion, Feb +$10.601 billion), (5) Dallas Fed President Robert Kaplan (non-voter) speaks as part of a panel discussion at the Atlanta Fed’s Financial Markets Conference, (6) Chicago Fed President Charles Evans (non-voter) speaks at the Atlanta Fed’s Financial Markets Conference on “Machines Learning Finance, Will they Change the Game?,” USDA weekly Crop Progress.