OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 -0.25%) this morning are down -0.12% before U.S. Q1 GDP data and the FOMC decision. European stocks are up +0.07% as they fluctuate between minor gains and losses. Weakness in European stocks was muted after the Eurozone Apr business climate indicator unexpectedly rose +0.09 to 0.32, an 11-month high. Asian stocks closed mostly lower: Japan closed for holiday, Hong Kong -0.15%, China +0.01%, Taiwan -1.03%, Australia -1.85%, Singapore -0.23%, South Korea -0.19%, India -0.62%.
Commodity prices are mostly lower. Jun crude oil (CLM15 -0.63%) is down -0.51% and Jun gasoline (RBM15 -0.78%) is down -0.61% ahead of today’s EIA data that is expected to show crude inventories rose +2.5 million bbl to a new record high Metals prices are weaker. Jun gold (GCM15 -0.54%) is down -0.58% and May copper (HGK15 -0.50%) is down -0.36%. Agriculture prices are mixed.
The dollar index (DXY00 -0.18%) is down -0.14% to a 1-1/2 month low on speculation the FOMC will signal that it will delay an interest rate increase. EUR/USD (^EURUSD) is up +0.14% at a 3-week high after a gauge of Eurozone business confidence rose to an 11-month high. USD/JPY (^USDJPY) is up +0.32%. GBP/USD rose +0.17% to a 1-3/4 month high on speculation the BOE may soon tighten monetary policy after UK Apr nationwide house prices rose a more-than-expected +1.0% m/m, the most in 10 months.
Jun T-note prices (ZNM15 -0.28%) are down -7.5 ticks at a 2-week low on negative carry-over from a slide in German bund prices to a 1-1/4 month low. The 10-year German bund yield jumped 8 bp to a 1-1/4 month high of 0.249% on weak demand for Germany’s 5-year note auction that received only 3.649 billion euros of bids, short of its 4 billion-euro sales goal.
The ECB raised the amount of Emergency Liquidity Assistance to the Bank of Greece by +1.4 billion euros to 76.9 billion euros. Data from the Bank of Greece show Greek Mar bank deposits by businesses and households fell -1.4% m/m to 138.6 billion euros, the sixth consecutive month of outflows and the lowest since Jan 2005.
