OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU14 +0.31%) this morning are up +0.24% on optimism that this morning’s ADP employment report will show solid gains in employment last month, while European stocks are little changed ahead of the results of today’s ECB meeting. A positive for European stocks was the largest increase in German factory orders in 13 months. As expected, the BOE kept its benchmark rate at 0.50% and maintained its asset purchase target at 375 billion pounds. Asian stocks closed mixed: Japan -0.33%, Hong Kong -0.08%, China +0.72%, Taiwan -0.23%, Australia -0.44%, Singapore -0.07%, South Korea +0.35%, India -0.20%. China’s Shanghai Stock Index climbed to a 1-1/4 year high on signs the government is boosting stimulus measures after Reuters reported that Chinese regulators will allow property developers to issue mid-term notes in the interbank market to cut funding costs. Commodity prices are mixed. Oct crude oil (CLV14 -0.24%) is down -0.40%. Oct gasoline (RBV14 +0.48%) is up +0.19%. Dec gold (GCZ14 +0.06%) is up +0.15%. Dec copper (HGZ14 +0.88%) is up +0.58%. Agriculture and livestock prices are mixed with Dec wheat down -0.70% at a new contract low and Oct cattle up +1.58% at a 5-week high. The dollar index (DXY00 +0.08%) is up +0.14%. EUR/USD (^EURUSD) is down -0.18%. USD/JPY (^USDJPY) is up +0.19%. Dec T-note prices (ZNZ14 -0.05%) are up +0.5 of a tick.
The BOJ said it will maintain record stimulus following its 2-day policy meeting as it kept its pledge to increase the monetary base at an annual pace of 60 trillion to 70 trillion yen ($667 billion). BOJ Governor Kuroda said a moderate recovery would continue and indicated a weaker yen would support the Japanese economy that still faces headwinds from the Apr sales tax hike.
German Jul factory orders rose +4.6% m/m, more than expectations of +1.5% m/m and the largest monthly increase in 13 months. On an annual basis, Jul factory orders rose +4.9% y/y, stronger than expectations of +1.1% y/y.
