OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM14Â -0.23%) this morning are down -0.17% as they fall back from Monday’s record high, although European stocks are up +0.25% at a 5-3/4 year high after UK industrial production rose at its fastest annual pace in over 3 years. Asian stocks closed mixed: Japan -0.85%, Hong Kong +0.86%, China +1.26%, Taiwan +0.65%, Australia +0.10%, Singapore -0.34%, South Korea +1.14%, India +0.01%. Chinese stocks rallied as the Shanghai Stock Index climbed to its best level in a week after the PBOC announced a -0.5 point cut in reserve requirements for some banks in a policy move aimed at supporting smaller companies and agriculture. Commodity prices are mixed. July crude oil (CLN14Â +0.34%) is up +0.35% at a 3-week high on expectations that Wednesday’s weekly EIA inventory data will show crude stockpiles fell -1.5 million bbl. July gasoline (RBN14Â +0.16%) is up +0.14%. Aug gold (GCQ14Â +0.09%) is down -0.08%. July copper (HGN14-0.31%) is down -0.51%. Agriculture and livestock prices are mostly higher. The dollar index (DXY00Â +0.17%) is up +0.20%. EUR/USD (^EURUSD)is down -0.38%. USD/JPY (^USDJPY) is down -0.20%. Sep T-note prices (ZNU14Â -0.08%) are down -2 ticks.
The People’s Bank of China (PBOC) announced that effective Jun 16, it will cut the reserve requirement by -0.5 of a percentage point for two-thirds of city commercial banks, 80% of non-county level rural commercial banks and 90% on non-county rural cooperative banks in a policy move aimed at supporting smaller companies and agriculture.
China May CPI rose +2.5% y/y, more than expectations of +2.4% y/y. May PPI fell -1.4% y/y, less than expectations of -1.5% y/y.
UK Apr industrial production rose +0.4% m/m and +3.0% y/y, better than expectations of +0.4% m/m and +2.8% y/y with the +3.0% y/y increase the largest annual gain in 3-1/4 years.
UK Apr manufacturing production rose +0.4% m/m and +4.4% y/y, stronger than expectations of +0.4% m/m and +4.0% y/y with the +4.4% y/y increase the largest annual gain in 3-1/4 years.
The UK May BRC like-for-like retail sales monitor rose +0.5% y/y, less than expectations of +1.6% y/y.
The Japan Apr tertiary industry activity index fell -5.4% m/m, a bigger decline than expectations of -3.4% m/m and matched the Apr 2011 drop as the largest decline in 17 years.
U.S. STOCK PREVIEW
The Treasury today will sell $28 billion of 3-year T-notes. There are three of the Russell 1000 companies that report earnings today: Science Applications (consensus $0.67), HD Supply Holdings (0.17), Ulta Salon (0.74).
Equity conferences during the remainder of this week include: Goldman Sachs European Financials Conference on Tue, Harbor’s Aluminum Outlook Summit on Tue, Morgan Stanley Financials Conference on Tue-Wed, Piper Jaffray Consumer Conference on Tue-Wed, Goldman Sachs Global Healthcare Conference on Tue-Thu, William Blair Growth Stock Conference on Tue-Thu, Credit Suisse Future of Payments & Commerce Conference on Wed, Goldman Sachs North American Energy Summit on Wed, Mexico Capital Projects & Infrastructure Summit on Wed, 2nd Annual Mexico Capital Projects & Infrastructure Summit on Wed-Thu, Morgan Stanley Leveraged Finance Conference on Wed-Thu, Drexel Hamilton Aerospace and Defense Conference on Thu, and Robert W. Baird & Co. Inc. Utility & Infrastructure Symposium on Thu.
