OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 -0.02%) are down -0.05% and European stocks are down -0.32% as global stocks consolidate Monday’s sharp rally. Q2 earnings season is now in focus as the market awaits earnings reports from JPMorgan Chase, Wells Fargo and Johnson & Johnson. Losses in European stocks were contained after German investor confidence fell less than expected this month. Asian stocks closed mixed: Japan +1.47%, Hong Kong -0.41%, China -1.16%, Taiwan +0.09%, Australia +1.90%, Singapore +0.16%, South Korea -0.48%, India -0.10%.
Commodity prices are mostly lower. Aug crude oil (CLQ15 -1.03%) is down sharply by -2.09% after Iran reached a deal with world powers over its nuclear program, which bolstered speculation that an increase in Iranian crude exports will flood an already oversupplied global oil market. Aug gasoline (RBQ15 -1.07%) is down -1.64%. Metals prices are weaker. Aug gold (GCQ15 -0.22%) is down -0.25%. Sep copper (HGU15 -1.20%) is down -1.08%. Agricultural prices are mixed with Nov soybeans up +0.73% at an 8-month high on crop concerns after the National Weather Service said that parts of the Midwest saw more than triple the normal amount of rainfall in the past week.
The dollar index (DXY00 -0.20%) is down -0.16%. EUR/USD (^EURUSD) is up +0.21%. USD/JPY (^USDJPY) is down -0.05%.
Sep T-note prices (ZNU15 -0.09%) are down -2.5 ticks.
After 18 days of negotiations, Iran and six world powers signed an agreement to limit Iran’s nuclear program in return for ending economic sanctions that were imposed on Iran in 2012. Diplomats said that restrictions on Iran will remain in place until UN monitors report on the country’s compliance with the deal in December. The U.S. Congress has 60 days to review and agree to the deal, a deal that Israel said it would use “every means” possible to convince Congress to reject.
The German Jul ZEW survey expectations of economic growth fell -1.8 to 29.7, a smaller decline than expectations of -2.5 to 29.0, but still the lowest in 8 months.
