OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU14 +0.48%) this morning are up +0.42% and European stocks are up +1.07% on reduced tensions in Ukraine after Russia said it ended military exercises near the Ukraine border. European bank stocks also rallied, led by an 8% jump in Italy’s Banco Popolare, that rose after it unexpectedly reported a Q2 profit of 25 million euros ($33.5 million), better than consensus of a -12.8 million euro loss. Asian stocks closed higher: Japan +2.38%, Hong Kong +1.29%, China +1.47%, Taiwan +0.96%, Australia +0.40%, Singapore +0.53%, South Korea +0.50%, India +0.75%. Japan’s Nikkei Stock Index climbed over 2% after Japan Jul consumer confidence rose to an 8-month high, and Chinese stocks rallied on speculation that benign inflation data will allow the government to implement additional stimulus measures after China Jul CPI rose +2.3% y/y, the same pace as in Jun and below the government’s 3.5% target. Commodity prices are mixed. Sep crude oil (CLU14 +0.06%) is up +0.08%. Sep gasoline (RBU14 -0.02%) is down -0.04%. Dec gold (GCZ14 -0.02%) is down -0.14%. Sep copper (HGU14 +0.33%) is up +0.52%. Agriculture prices are mixed. The dollar index (DXY00 +0.06%) is up +0.07%. EUR/USD (^EURUSD) is down -0.12%. USD/JPY (^USDJPY) is up +0.06%. Sep T-note prices (ZNU14 -0.12%) are down -5 ticks.
Speaking at a conference in Stockholm, Fed Vice Chairman Fischer said that sluggish U.S. labor supply growth is a “source of concern” because it may contribute to a slowdown in longer-run output of the economy, which also faces a drag from housing and “broad-based” slowing from emerging markets.
China Jun CPI rose +2.3% y/y, unchanged from Jun and right on expectations. PPI fell -0.9% y/y, right on expectations and the 30th consecutive month of falling producer prices.
UK Jul Lloyds employment confidence rose +5 to 6, the highest since the data series began in 2004.
