OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU14 -0.10%) this morning are down -0.11% and European stocks are down -0.90% as investors lighten up positions ahead of speeches later today from Fed Chair Yellen and ECB President Draghi at the Fed’s annual symposium in Jackson Hole, Wyoming. Stocks were also pressured on heightened tensions in Ukraine after Interfax reported that Ukraine sees a Russian aid convoy into the eastern part of its country as an invasion. The head of Ukraine’s Security Council says that Russia is invading under cover of the Red Cross and that insurgents will use trucks now carrying humanitarian aid to transport weaponry. Asian stocks closed mostly higher: Japan -0.30%, Hong Kong +0.47%, China +0.47%, Taiwan +1.37%, Australia +0.12%, Singapore +0.04%, South Korea +0.66%, India +0.23%. Commodity prices are mixed. Oct crude oil (CLV14 -0.30%) is down -0.37%. Oct gasoline (RBV14 -0.02%) is down -0.08%. Dec gold (GCZ14 +0.46%) is up +0.50%. Sep copper (HGU14 +0.72%) is up +0.76% at a 1-1/2 week high on signs of tighter global supplies after weekly Shanghai copper inventories tumbled -10,297 MT to a 6-week low. Agriculture and livestock prices are higher. The dollar index (DXY00 +0.06%) is up +0.06%. EUR/USD (^EURUSD) is down -0.08%. USD/JPY (^USDJPY) is down-0.14%. Sep T-note prices (ZNU14 +0.09%) are up +4 ticks.
Weekly data shows the ECB’s balance sheet fell to 2.02 trillion euros in the week ended Aug 15 from 2.03 trillion euros the previous week, the smallest in 3 years. ECB balance sheet lending to Eurozone credit institutions fell to 501 billion euros in the week ended Aug 15 from 504.9 billion euros the prior week, the lowest since Jul 2011.
The ECB’s current account holdings fell to 211.2 billion euros on Thursday versus 221.4 billion euros on Wednesday, the lowest in 2 weeks. Excess liquidity (calculated as current account holdings plus deposit facility minus average reserve requirements) fell to 129.5 billion euros on Thursday versus 134.5 billion euros on Wednesday, the lowest since Aug 6.
