OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU17 -0.65%) this morning are down -0.62% and European stocks are down -1.13% at a 1-1/2 month low. U.S. stock indexes retreated after people familiar with the story said that the special counsel investigating Russia’s interference in the 2016 election plans to interview two top U.S. intelligence officials about whether President Trump sought their help to get the FBI to end the probe of former NSA Adviser Flynn. European stocks dropped on weakness in mining companies, energy stocks and commodity producers as Jul WTI crude oil (CLN17 -0.65%) slid -0.31% to a 1-1/4 month low, Aug COMEX gold (GCQ17 -1.43%) fell -1.21% to a 2-1/2 week low and Jul COMEX copper (HGN17 -0.35%) dropped -0.21% to a 1-week low. Asian stocks settled mostly lower: Japan -0.26%, Hong Kong -1.20%, China +0.06%, Taiwan +0.16%, Australia -1.21%, Singapore -0.66%, South Korea -0.41%, India -0.26%. Japan’s Nikkei Stock Index sold-off to a 2-week low after Wednesday’s plunge in USD/JPY to a 1-3/4 month low undercut Japanese exporter stocks.

The dollar index (DXY00 +0.36%) is up +0.35%. EUR/USD (^EURUSD) is down -0.46% at a 2-week low. USD/JPY (^USDJPY) is up +0.16%.

Sep 10-year T-note prices (ZNU17 -0.12%) are down -2 ticks.

The BOE as expected kept its benchmark rate unchanged at 0.25% with a 5-3 vote, the most dissenters since 2011, and maintained its asset purchase target at 435 billion pounds. BOE policy makers said that with the pound’s recent decline, inflation could overshoot the central bank’s 2% target by more than previously thought.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected -4,000 to 241,000, previous -10,000 to 245,000) and continuing claims (expected +3,000 to 1.920 million, previous -2,000 to 1.917 million), (2) Jun Empire manufacturing index (expected +6.0 to 5.0, May -6.2 to -1.0), (3) Jun Philadelphia Fed business outlook index (expected -13.8 to 25.0, May +16.8 to 38.8), (4) May import price index (expected -0.1% m/m, Apr +0.5% and +0.4% ex petroleum), (5) May industrial production (expected +0.2%, Apr +1.0%), (6) Jun NAHB housing market index (expected unch at 70, May +2 to 70), (7) USDA weekly Export Sales.