OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 -0.05%) are down -0.07% ahead of U.S. data on May retail sales and weekly jobless claims. European stocks are up +0.75% on optimism that Greece will finally reach a deal with creditors after Greek Prime Minister Tsipras promised that he will work with “higher intensity” to find a package of reforms and budget fixes that are needed for Greece to receive financial aid. Tsipras’ comments sent Greek stocks soaring with Greece’s ASE Stock Index up +6.62%. Asian stocks closed mostly higher: Japan +1.68%, Hong Kong +0.83%, China +0.30%, Taiwan +0.04%, Australia +1.42%, Singapore +0.66%, South Korea +0.08%, India -1.75%. Japanese stocks closed higher as the yen weakened, which lifted exporters, and Chinese stocks closed higher after data on industrial production and credit show that China’s economy may be stabilizing.
Commodity prices are weaker as the dollar moves higher. Jul crude oil (CLN15 -1.40%) is down -1.25%. Jul gasoline (RBN15 -0.99%) is down -0.88%. Metals prices are lower. Aug gold (GCQ15 -0.62%) is own -0.67%. Jul copper (HGN15 -2.07%) is down -2.15%. Agricultural prices are mixed.
The dollar index (DXY00 +0.47%) is up +0.42%. EUR/USD (^EURUSD) is down -0.54%. USD/JPY (^USDJPY) is up +0.77%.
Sep T-note prices (ZNU15 -0.04%) are down -3 ticks at a fresh 8-month low.
During a teleconference on Wednesday, the ECB increased the limit on Emergency Liquidity Assistance (ELA) to Greek banks by 2.3 billion euros, the largest increase in 4 months, to a total of 83 billion euros.
China May industrial production climbed +6.1% y/y, stronger than expectations of +6.0% y/y.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected -1,000 to 275,000 after last week’s -8,000 to 276,000) and continuing claims (expected +4,000 to 2.200 million after last week’s -30,000 to 2.196 million), (2) May retail sales (expected +1.2% and +0.8% ex autos after April’s unch and +0.1% ex autos), (3) May import price index (expected +0.8% m/m and -10.0% y/y after April’s -0.3% m/m and -10.7% y/y), (4) Apr business inventories (expected +0.2% after March’s +0.1%), (5) Q1 household net worth change (Q4 was +$1.517 trillion), and (6) the Treasury’s auction of $13 billion of 30-year T-bonds.
