OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 +0.72%) are up +0.64% and European stocks are up +1.65%, both at 2-week highs, after Greek Prime Minister Tsipras capitulated to European demands for immediate action to qualify for up to 86 billion in bailout funds to keep Greece from default and in the Eurozone. Greek lawmakers have until Wednesday to pass the creditor demands that include streamlining value-added taxes, broadening the tax base and cutting pension costs. Another positive for global stocks was the rally in the Shanghai Composite to a 1-week high after China Jun exports rose more than expected, a sign of economic strength. Asian stocks closed mostly higher: Japan +1.57%, Hong Kong +1.30%, China +2.39%, Taiwan +1.34%, Australia -0.34%, Singapore +0.96%, South Korea +1.22%, India +1.08%.
Commodity prices are mixed. Aug crude oil (CLQ15 -0.85%) is down -0.89% on optimism a nuclear deal with Iran was imminent, which would allow Iranian crude exports into an oversupplied global market. Aug gasoline (RBQ15 -1.67%) is down -1.82%. Metals prices are mixed. Aug gold (GCQ15 -0.17%) is down -0.20%. Sep copper (HGU15 +0.71%) is up +0.67%. Agricultural prices are mixed.
The dollar index (DXY00 +0.39%) is up +0.35%. EUR/USD (^EURUSD) is down -0.84%. USD/JPY (^USDJPY) is up +0.50% at a 1-week high as the rally in global equity markets reduces the safe-haven demand for the yen.
Sep T-note prices (ZNU15 -0.30%) are down -11.5 ticks at a 1-week low as global government bonds fell back on news of a Greek debt deal. The yield on the 10-year German bund rose to a 1-month high of 0.936%.
The China Jun trade balance shrank to a surplus of +$46.54 billion, a smaller surplus than expectations of +$56.70 billion. Jun exports rose +2.8% y/y, stronger than expectations of +1.0% y/y. Jun imports fell -6.1% y/y, a smaller decline than expectations of -15.5% y/y, but still the eighth consecutive month that imports have declined year-over-year.
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