OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU14 +0.15%) this morning are up +0.10% on the prospects for a strong U.S. Jul durable goods orders report later this morning, while European stocks are up +0.18% on optimism a resolution to the conflict in Ukraine can be found. Russia President Putin and Ukraine President Poroshenko are set to meet today in Minsk, Belarus, as tensions continue to flare in the region. Ukraine said that an armored column that included 10 tanks entered its country Monday from Russia under the guise of humanitarian aid into rebel-held Ukrainian territory. European government bond yields continue to fall to record lows amid speculation of additional ECB monetary easing. The yield on Italy’s 10-year bond fell to 2.40% and the yield on Spain’s 10-year bond fell to 2.18%, both at the lowest since Bloomberg started collecting the data in 1993. Asian stocks closed mixed as valuation concerns weighed on prices with Asian stock markets at their highest valuations this year: Japan -0.59%, Hong Kong -0.37%, China -0.80%, Taiwan +0.04%, Australia +0.05%, Singapore -0.22%, South Korea +0.26%, India +0.02%. China’s Shanghai Stock Index fell to a 2-week low amid concern that 10 new initial public offerings this week may divert funds from existing equities. Commodity prices are mixed. Oct crude oilCLV14 +0.29%) is up +0.28%. Oct gasoline (RBV14 +0.15%) is up +0.15%. Dec gold (GCZ14 +0.69%) is up +0.74%. Sep copper (HGU14 -0.59%) is down -0.57%. Agriculture and livestock prices are mostly lower with Nov soybeans down -0.41% at a fresh contract low. The dollar index (DXY00-0.02%) is down -0.07%. EUR/USD (^EURUSD) is up +0.05% as it rebounds from an 11-1/2 month low. USD/JPY (^USDJPY) is down -0.15%. Sep T-note prices (ZNU14 +0.10%) are up +6 ticks.
The Markit iTraxx Europe index of credit-default swaps on 125 investment-grade companies, which is cost of insuring against losses on European corporate debt, fell -2.5 bp to 57 bp, a 7-week low.
