OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 +0.10%) this morning are up +0.04% and European stocks are up +0.19% after a gauge of German consumer confidence unexpectedly rose. The 10-year Greek bond yield fell back from Tuesday’s 1-month high after the ECB left the level of emergency cash available to Greek banks unchanged from a week ago, a sign that Greece’s cash crunch hasn’t worsened. Asian stocks closed mixed: Japan +0.17%, Hong Kong -0.60%, China +0.63%, Taiwan +0.25%, Australia -0.83%, Singapore -1.01%, South Korea -1.98%, India +0.12%. Japan’s Nikkei Stock Index pushed up to a new 15-year high as exporters rallied on the prospects of improved earnings after the yen tumbled to a 7-3/4 year low against the dollar. China’s Shanghai Composite Stock Index continued its recent rally up to a new 7-1/3 year high after China Apr industrial profits rose +2.6% y/y, the first increase in 5 months.
Commodity prices are mixed. Jul crude oil (CLN15 +0.64%) is up +0.24% and Jul gasoline (RBN15 +0.01%) is down -0.22%. Metals prices are weaker. Jun gold (GCM15 -0.08%) is down -0.24% at a 2-week low. Jul copper (HGN15 -0.47%) is down -0.34%. Agricultural prices are mixed.
The dollar index (DXY00 unch) is up +0.05% at a new 1-month high. EUR/USD (^EURUSD) is up +0.11%. USD/JPY (^USDJPY) is up +0.37% at a fresh 7-3/4 year high.
Jun T-note prices (ZNM15 -0.11%) are down -5 ticks.
According to two people familiar with the matter, the ECB left the level of emergency cash available to Greek banks unchanged from a week ago at 80.2 billion euros and that Greek banks still have a liquidity buffer of about 3 billion euros.
Speaking Tuesday evening to the LSU Graduate School of Banking, Richmond Fed President Lacker said that it looks “pretty clear” inflation is heading back up to the Fed’s 2.0% goal and that there are risks for the Fed to move too late on interest rates.
German Jun GfK consumer confidence unexpectedly rose +0.1 to 10.2, stronger than expectations of -0.1 to 10.0 and the highest since the data series began in 2005.
