OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU17 -0.55%) this morning are down -0.62% at a 1-week low and European stocks are down -1.32% at a 5-3/4 month low as global stocks plunge after North Korea fired a ballistic missile over Japan. The VIX volatility index jumped to a 1-week high and Dec COMEX gold (GCZ17 +0.90%) soared +0.81% to a 9-1/2 month high on increased safe-haven demand. Japan called North Korea’s latest provocation an “unprecedented, grave and serious threat” and asked the United Nations Security Council to hold an emergency meeting, while Japanese Prime Minister Abe told reporters he spoke with President Trump for 40 minutes and they agreed to increase pressure on North Korea. Asian stocks settled mostly lower: Japan -0.45%, Hong Kong -0.35%, China +0.08%, Taiwan -0.28%, Australia -0.72%, Singapore -0.56%, South Korea -0.29%, India -1.14%. A -0.62% slide in USD/JPY to a 4-1/4 month low also undercut Japanese stocks as the Nikkei Stock Index tumbled to a 3-3/4 month low. Japanese exporters slumped due to the surging yen, which rallied on increased safe-haven demand from North Korea’s missile firing over Japan.

The dollar index (DXY00 -0.50%) is down -0.41% at a 2-1/2 year low. EUR/USD (^EURUSD) is up +0.48% at a 2-1/2 year high. USD/JPY (^USDJPY) is down -0.62% at a 4-1/4 month low.

Sep 10-year T-note prices (ZNU17 +0.36%) are up +12 ticks at a 9-1/2 month nearest-futures high as the slump in global stocks over the North Korean crisis boosts safe-haven demand for government debt.

Japan Jul overall household spending unexpectedly fell -0.2% y/y, weaker than expectations of +0.7% y/y.

The Japan Jul jobless rate was unch at 2.8%, right on expectations and the lowest in 23-years. The Jul job-to-applicant ratio rose +0.01 to 1.52, right on expectations and the highest since Feb 1974.

German Sep GfK consumer confidence rose +0.1 to 10.9, stronger than expectations of no change at 10.8 and the highest since the data series began in 2005.