OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 +1.20%) are up sharply by +1.27% and European stocks are up +3.01% at a 1-week high after Chinese stocks closed higher for a second day and after Greece submitted proposals to its creditors. French President Hollande said the Greek proposals were “serious” and “credible” after Greek Prime Minister Tsipras offered to meet most of the demands made by creditors in exchange for a 3-year bailout of 53.5 billion euros ($59.4 billion). Asian stocks closed mostly higher: Japan -0.38%, Hong Kong +2.08%, China +4.54%, Taiwan closed for holiday, Australia +0.39%, Singapore +0.38%, South Korea +0.02%, India +0.32%. Chinese stocks closed higher amid government intervention to help stem the recent equity rout. More than 1,300 Chinese stocks are still halted from trading on China’s mainland exchanges, however, leaving trading to only 53% of the total market. Deleveraging by margin traders continued as stock bought on margin fell for a record 14th day on the Shanghai Stock Exchange on Thursday.
Commodity prices are mixed. Aug crude oil (CLQ15 +0.40%) is up +1.10%, Aug gasoline (RBQ15 -0.81%) is down -0.41%. Metals prices are mixed. Aug gold (GCQ15 +0.23%) is up +0.25%. Sep copper (HGU15 -0.74%) is down -0.61% after weekly Shanghai copper inventories rose +3,759 MT. Agricultural prices are higher ahead of the USDA’s Jul WASDE crop production report.
The dollar index (DXY00 -1.01%) is down -1.12% at a 1-week low. EUR/USD (^EURUSD) is up +1.44% at a 1-1/2 week high. USD/JPY (^USDJPY) is up +0.85%.
Sep T-note prices (ZNU15 -0.33%) are down -15.5 ticks.
The Greek government seeks a 3-year bailout loan of at least 53.5 billion euros that was presented to European institutions late last night and will be presented to the Greek Parliament today. It will then be discussed at a summit of EU leaders Sunday to determine whether Greece gets a new bailout or is forced to leave the Eurozone. The Greek proposals include creditors’ demands for sales tax increases and cuts in public spending and pensions. Greece also proposes the restructuring of its debt and a package of growth measures of 35 billion euros. Greece said it will use the 3-year loan from the European Stability Mechanism to cover its debt repayments between 2015 and 2018.
