OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 +0.32%) this morning are up +0.36% on M&A activity as HCC Insurance Holdings jumped 33% in pre-market trading after Tokio Marine Holdings agreed to buy the company for about $7.5 billion. European stocks are up +0.85% as Greek Prime Minister Tsipras prepares to meet German Chancellor Merkel and French President Hollande in an attempt to strike a debt deal. The Greek 10-year bond yield fell 60 bp from a 6-week high of 12.21% down to 11.61% on optimism that Greece can reach a deal with its creditors. Asian stocks closed mixed: Japan -0.25%, Hong Kong -1.12%, China -0.15%, Taiwan +1.16%, Australia +0.13%, Singapore +0.93%, South Korea -0.55%, India +1.36%. Japan’s Nikkei Stock Index dropped to a 3-week low as a rally in the yen to a 2-week high against the dollar undercut earnings prospects of Japanese exporters. Chinese stocks closed lower after MSCI held off from adding mainland Chinese equities to its benchmark indexes, saying it expects to include the stocks after it settles investor concerns about accessibility and stock ownership with the China Securities and Regulatory Commission.
Commodity prices are mostly higher with a weak dollar. Jul crude oil (CLN15 +2.28%) is up +2.16% at a 3-week high on expectations for U.S. crude supplies to drop after data late Tuesday from API showed crude stockpiles fell by -6.7 million bbl in the week of Jun 5. Jul gasoline (RBN15 +1.77%) is up +1.90% at a 7-month high. Metals prices are stronger. Aug gold (GCQ15 +0.71%) is up +0.63%. Jul copper (HGN15 +1.40%) is up +1.60% at a 1-week high on signs of tighter supplies after LME copper inventories fell -2,800 MT to 308,025 MT, a 3-month low. Agricultural prices are mixed ahead of today’s USDA Jun WASDE crop production report.
The dollar index (DXY00 -0.29%) is down -0.27% at a 3-week low. EUR/USD (^EURUSD) is down -0.10%. USD/JPY (^USDJPY) is down -0.92% at a 2-week low after BOJ Governor Kuroda said “the yen is unlikely to weaken further.”
Sep T-note prices (ZNU15 -0.40%) are down -18.5 ticks at an 8-month low on carryover weakness from a plunge in German bund prices to an 8-1/2 month low.
