OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU14 -0.04%) this morning are up +0.08% and European stocks are up +0.03% on the prospects for a sustained peace in Ukraine after Ukrainian President Poroshenko said that Russia has withdrawn more than 70% of its troops from his country. Global stocks also found support on comments from Chinese Premier Li Keqiang who said that his country will accelerate policy changes to promote growth. Li Keqiang added that the Chinese economy will avoid a hard-landing and that his government will ensure a medium to high growth rate as it deepens policy changes to promote business, attract foreign investment and protect intellectual property. Asian stocks closed mostly lower: Japan +0.25%, Hong Kong -1.93%, China -0.52%, Taiwan -0.82%, Australia -0.60%, Singapore -0.13%, South Korea closed for holiday, India -0.76%. Japanese stocks bucked the trend of lower Asian markets and closed higher as exporter stocks rallied on the prospects for improved earnings after the yen slumped to a fresh 5-3/4 year low against the dollar. Commodity prices are mixed. Oct crude oil (CLV14 -0.42%) is up +0.09%. Oct gasoline (RBV14 -0.14%) is up +0.18%. Dec gold (GCZ14 +0.36%) is up +0.50%. Dec copper (HGZ14 +0.24%) is down -0.18%. Agriculture and livestock prices are mixed although Oct live cattle prices are up +1.00% at a new all-time high. The dollar index (DXY00 -0.08%) is down -0.17%. EUR/USD (^EURUSD) is up +0.10%. USD/JPY (^USDJPY) is up +0.37% at a 5-3/4 year high after an unexpected decline in Japanese producer prices last month bolstered expectations for the BOJ to expand stimulus. Dec T-note prices (ZNZ14 -0.14%) are down -4 ticks at a 1-month low.
Japan Aug PPI unexpectedly fell -0.2% m/m, less than expectations of unch m/m and the biggest drop in 22 months. On an annual basis, Aug PPI rose +3.9% y/y, less than expectations of +4.1% y/y.
