OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 +0.37%) are up +0.48% and European stocks are up +0.49% after Greece put forth a revised plan to stave off default and an EU official expressed optimism that the Greek plan can be a basis for a deal. Eurozone finance ministers will meet later today in Brussels to decide if the new Greek plan meets the criteria of creditors. The 10-year yield on the Greek bond rose 14 bp to 10.94% after the ECB decided today to leave the ceiling of maximum funds available to Greek banks through the Emergency Liquidity Assistance (ELA) unchanged. Asian stocks closed mostly lower: Japan -0.46%, Hong Kong -0.95%, China -3.46%, Taiwan +0.84%, Australia -0.95%, Singapore -0.04%, South Korea -0.45%, India +0.60%. China’s Shanghai Composite closed sharply lower on concern valuations have risen to unsustainable levels and a flood of initial public offerings were taking funds away from existing equities.
Commodity prices are mostly lower. Aug crude oil (CLQ15 -0.32%) is down -0.38%, Aug gasoline (RBQ15 +0.11%) is up +0.25%. Metals prices are weaker. Aug gold (GCQ15 +0.06%) is down -0.01%. Jul copper (HGN15 -0.42%) is down -0.69%. Agricultural prices are mixed.
The dollar index (DXY00 +0.02%) is little changed, up +0.02%. EUR/USD (^EURUSD) is down -0.04%. USD/JPY (^USDJPY) is down -0.15%.
Sep T-note prices (ZNU15 -0.16%) are down -8.5 ticks as a rally in stocks undercuts demand for Treasuries.
Greek Prime Minister Tsipras wrapped up an emergency session with the ECB, the IMF, and the European Commission and then put forth a revised proposal to stave off default. Eurozone finance ministers will meet later today in Brussels and will study the new Greek plan to see if it meets the terms laid out by creditors.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +6,000 to 273,000 after last week’s -12,000 to 267,000) and continuing claims (expected -4,000 to 2.218 million after last week’s -50,000 to 2.222 million), (2) May personal income and spending (expected +0.5% and +0.7%, respectively, after April’s +0.4 and unchanged), (3) May PCE deflator (expected +0.3% m/m and +0.2% y/y after April’s unch m/m and +0.1% y/y) and May PCE core deflator (expected +0.1% m/m and +1.2% y/y after April’s +0.1% m/m and +1.2% y/y), (4) Jun Markit services PMI (expected +0.3 to 56.5 after May’s -1.2 to 56.2), (5) June Kansas City Fed manufacturing activity (expected +4 to -9 after May’s -6 to -13), and (6) the Treasury’s auction of $29 billion of 7-year T-notes.
