OVERNIGHT MARKETS AND NEWS

Sep E-mini S&Ps (ESU17 +0.08%) this morning are up +0.09% and European stocks are up +0.38% as they followed Asian markets higher after tensions surrounding North Korea eased. European stocks also received a lift after Eurozone Aug economic confidence rose more than expected to a 10-year high. Overall stock gains were muted on weakness in energy stocks as Oct WTI crude oil (CLV17 -0.54%) falls -0.60%. Asian stocks settled mostly higher: Japan +0.74%, Hong Kong +1.19%, China -0.05%, Taiwan +0.69%, Australia +0.01%, Singapore +0.49%, South Korea +0.33%, India +0.82%. Japan’s Nikkei Stock Index rebounded from Tuesday’s 3-3/4 month low as exporter stocks rallied when USD/JPY climbed to a 1-1/2 week high as an easing of North Korean tensions reduced safe-haven demand for the yen. Japanese stocks also found support on stronger-than-expected Japan Jul retail sales.

The dollar index (DXY00 +0.24%) is up +0.25%. EUR/USD (^EURUSD) is down -0.21%. USD/JPY (^USDJPY) is up +0.17%.

Sep 10-year T-note prices (ZNU17 -0.02%) are down -0.5 of a tick.

Eurozone Aug economic confidence rose +0.6 to 111.9, stronger than expectations of +0.1 to 111.3 and a 10-year high.

Japan Jul retail sales rose +1.1% m/m, stronger than expectations of +0.3% m/m.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -0.5% with purchase sub-index -1.5% and refi sub-index +0.3%), (2) Aug ADP employment change (expected +185,000, Jul +178,000), (3) revised Q2 GDP (expected +2.7% q/q annualized, previous +2.6%), (4) Fed Governor Jerome Powell speaks on “The Role of Boards at Large Financial Firms” at a conference hosted by the Chicago Fed, (5) EIA Weekly Petroleum Status Report.

Notable Russell 1000 earnings reports today include: Brown-Forman (consensus $0.39), Analog Devices (1.15), Workday (0.15), Keysight Technologies (0.61).