Overnight Markets And News

Sep E-mini S&Ps (ESU18 -0.16%) this morning are down -0.06% on concern about President Trump’s legal woes after his former lawyer pleaded guilty to illegal campaign finance charges late Tuesday afternoon. European stocks are up +0.52% at a 1-week high and U.S. stock indexes recovered from their worst levels on strength in energy stocks as Oct WTI crude oil (CLV18 +1.69%) rose +1.70% to a 1-week high. Crude oil gained on the heels of API data late Tuesday afternoon that showed U.S. crude inventories fell -5.17 million bbl last week. Also, a 5% jump in Target in pre-market trading is lifting retail stocks after Target reported stronger-than-expected Q2 earnings and forecast higher-than-expected full-year earnings. Asian stocks settled mixed: Japan +0.64%, Hong Kong +0.63%, China-0.70%, Taiwan +0.11%, Australia -0.29%, Singapore -0.16%, South Korea +0.37%, India +0.02%. Trade concerns weighed on Chinese stocks ahead of a Chinese delegation’s arrival in the U.S. for two days of trade talks today and tomorrow. A rally in Japanese exporters led the Nikkei Stock Index up to a 1-week high on optimism over trade on reports that the U.S. and Mexico have moved closer toward a consensus on forging a new North American Free Trade Agreement.

The dollar index (DXY00 -0.25%) is down -0.12% at a 1-1/2 week low. EUR/USD (^EURUSD +0.33%) is up +0.25% at a 1-1/2 week high. USD/JPY (^USDJPY -0.02%) is up +0.08%.

Sep 10-year T-note prices (ZNU18 +0-045) are up +2.5 ticks at a 2-1/2 month high.

The Japan Jun all-industry activity index fell -0.8% m/m, right on expectations and the biggest decline in 5-months.

U.S. Stock Preview

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -2.0% to 335.8 with purchase sub-index -3.3% to 225.5 and refi sub-index unch at 927.5), (2) Jul existing home sales (expected +0.4% to 5.40 million, Jun -0.6% to 5.38 million), (3) EIA weekly Petroleum Status Report, (4) minutes of the Jul 31-Aug 1 FOMC meeting, (5) USDA Jul Cold Storage.