OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 -0.67%) this morning are down -0.67%% and European stocks are down -1.70% at a 3-week low after Chinese stock futures plunged over 5% in after-hours trading on news that China’s Securities Regulatory Commission (CSRC) will ban margin financing for over-the-counter (OTC) stock trading. The CSRC also expanded the number of Chinese stocks available for short selling to 1,100. Asian stocks closed mostly lower: Japan -1.70%, Hong Kong -0.31%, China +2.20%, Taiwan -0.89%, Australia -1.17%, Singapore -0.18%, South Korea -0.06%, India -0.78%. China’s Shanghai Composite Stock Index surged to a new 7-year high as new funds flow into Chinese stocks. Data from China Securities Depository and Clearing Co. show Chinese investors have opened a record 10.8 million new stock accounts this year, more than the total number for all of 2012 and 2013 combined. Japan’s Nikkei Stock Index fell to a 1-1/2 week low, led by weakness in exporters, after the yen climbed to a 3-week high against the dollar.
Commodity prices are mixed. May crude oil (CLK15 -0.97%) is down -0.69% and May gasoline (RBK15 -0.72%) is down -0.48%. Metals prices are higher as the dollar weakens. Jun gold (GCM15 +0.54%) is up +0.53%. May copper (HGK15 +0.02%) is up +0.29% at a 1-1/2 week high. Copper prices also found support on signs of reduced Chinese supplies after weekly Shanghai copper inventories fell -9,940 MT to 230,835 MT, a 1-1/2 month low. Agriculture prices are lower.
The dollar index (DXY00 -0.10%) is down -0.20% at a 1-1/2 week low as recent U.S. economic data point to signs of slowing momentum in the economy that dim the prospects for a near-term Fed interest rate increase. EUR/USD (^EURUSD) is up +0.45% at a 1-week high. USD/JPY (^USDJPY) is down-0.24% at a 3-week low. The British pound rose +0.55% to a 4-week high against the dollar on signs of strength in the UK labor market after the UK Mar claimant count rate fell for the 29th consecutive month to 772,400, the lowest since 1975.
Jun T-note prices (ZNM15Â +0.14%) are up +6.5 ticks at a 1-1/2 week high on carry-over support from a rally in German bunds as the 10-year bund yield fell to an all-time low of 0.049%.
