OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 -0.24%) this morning are down -0.25% and European stocks are down -1.08% on weaker-than-expected global manufacturing reports. Gauges of Chinese and Japanese manufacturing activity contracted at the fastest pace in a year and Eurozone manufacturing activity unexpectedly declined. Also, U.S. technology stocks are lower led by a 3% loss in Qualcomm and a 5% drop in Texas Instruments after both companies reported less than expected quarterly profits. European technology stocks are also lower, led by a 9% drop in Ericsson AB after the company reported profits that were below consensus due to a slowdown in spending by its North American operators. Asian stocks closed mostly higher: Japan +0.27%, Hong Kong -0.38%, China +0.36%, Taiwan +1.92%, Australia +0.12%, Singapore +0.19%, South Korea +1.47%, India -0.56%. Japan’s Nikkei stock index posted a fresh 15-year high as exporters rallied after the yen fell to a 1-week low against the dollar, which boosts the earnings prospects of exporters, while China’s Shanghai Composite rose to a new 7-year high after weaker-than-expected manufacturing data spurred speculation the government will expand stimulus measures.
Commodity prices are mixed. Jun crude oil (CLM15 -0.37%) is down -0.28% and Jun gasoline (RBM15 +0.35%) is up +0.28%. Metals prices are higher. Jun gold (GCM15 +0.18%) is up +0.17% after data showed funds boosted their gold holdings for a fourth day as gold assets in ETFs rose to a 4-week high on Wednesday. May copper (HGK15 +0.71%) is up +0.34% and recovered from a 1-month low on speculation China will boost stimulus to spur economic growth that will lift copper demand. Agriculture prices are mixed.
The dollar index (DXY00 +0.09%) is up +0.03%. EUR/USD (^EURUSD) is up +0.14%. USD/JPY (^USDJPY) is up +0.07% at a 1-week high.
Jun T-note prices (ZNM15 +0.11%) are up +5 ticks on increased safe-haven demand as stocks falter.
The China Apr HSBC flash manufacturing PMI fell -0.4 to 49.2, weaker than expectations of -0.2 to 49.4 and the lowest in a year, which bolsters concern about China’s economy.
