OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 +0.27%) this morning are up +0.23% and European stocks are up +0.83% after a gauge of Eurozone Apr manufacturing activity was revised higher. Comcast is up nearly 3% in pre-market trading after it reported Q1 profit of 79 cents a share, excluding some items, better than consensus of 74 cents. Strength in global stocks undercut government bond prices as the yield on the 10-year German bund rose to a 1-3/4 month high of 0.425%. Asian stocks closed mostly higher: Japan closed for holiday, Hong Kong -0.03%, China +0.87%, Taiwan +0.25%, Australia +0.23%, Singapore -0.13%, South Korea +0.34%, India +1.77%. Chinese stocks received a boost on speculation the government will expand stimulus measures after a gauge of Chinese manufacturing activity for last month was unexpectedly revised lower to its steepest pace of contraction in a year.
Commodity prices are mixed. Jun crude oil (CLM15 +0.66%) is up +0.32% and Jun gasoline (RBM15 +0.55%) is up +0.46% at a 5-1/4 month high. Metals prices are mixed. Jun gold (GCM15 +0.52%) is up +0.61%. Jul copper (HGN15 -0.51%) is down -0.79%. Agriculture prices are mixed.
The dollar index (DXY00 +0.31%) is up +0.28%. EUR/USD (^EURUSD) is down -0.54%. USD/JPY (^USDJPY) is up +0.06%.
Jun T-note prices (ZNM15 -0.10%) are down -3.5 ticks at a 1-1/2 month low on carry-over weakness from a slide in German bund prices to a 1-3/4 month low.
The yield on Greece’s 10-year bond moved up from a 1-3/4 month low of 9.88% to over 10.50% after people with knowledge of the matter said that Greece is still far from agreement with its international creditors. They said that gaps remain on issues from fiscal forecasts to labor and pension reforms, 3 days before the ECB’s next decision on emergency aid to Greece. Greece is due to make a 200-million euros payment to the IMF this week.
The China Apr HSBC flash manufacturing PMI was revised lower by -0.3 to 48.9 from the previously reported 49.2, weaker than expectations of a +0.2 upward revision to 49.4 and the steepest pace of contraction in a year.
