OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 -0.38%) this morning are down -0.35% ahead of U.S. weekly jobless claims and Mar housing starts that may provide a clue on the timing of a Fed interest rate increase. European stocks are down -1.24% on Greek default concerns after Standard & Poor’s downgraded Greece’s sovereign debt to junk status and as German Finance Minister Schaeuble ruled out further concessions to Greece. Asian stocks settled mostly higher: Japan +0.08%, Hong Kong +0.44%, China +2.71%, Taiwan +1.22%, Australia +0.66%, Singapore -0.24%, South Korea +1.01%, India -0.46%. China’s Shanghai Composite Index posted a new 7-year high on speculation the government will take more aggressive measures to bolster economic growth.
Commodity prices are mixed. May crude oil (CLK15 -1.45%) is down -1.67% and May gasoline (RBK15 -1.29%) is down -1.32% after data from Saudi Arabia showed Saudi Mar oil production rose +658,600 barrels a day to 10.294 million bpd. Metals prices are higher on speculation recent weak U.S. economic data may delay a Fed interest rate increase. Jun gold (GCM15 +0.53%) is up +0.52%. May copper (HGK15 +2.03%) is up +2.16%. Agriculture prices are mixed.
The dollar index (DXY00 -0.37%) is down -0.27% at a 1-week low and EUR/USD (^EURUSD) is up +0.43%. USD/JPY (^USDJPY) is down -.07%.
Jun T-note prices (ZNM15Â +0.13%) are up +6 ticks on carry-over support from a rally in German bunds to a record high as the 10-year bund yield tumbled to an all-time low of 0.077%.
The yield on the 10-year Greek bond shot up to a 2-year high of 13.044% after Standard & Poor’s downgraded Greece’s sovereign debt rating to CCC+ from B- with a “negative outlook.”
U.S. STOCK PREVIEW
Key U.S. news today includes (1) weekly unemployment claims (initial claims expected -1,000 to 280,000 after last week’s +14,000 to 281,000 and continuing claims expected +19,000 to 2.323 million after last week’s -23,000 to 2.304 million), (2) Mar housing starts (expected +15.9% to 1.040 million after Feb’s -17.0% to 897,000), (3) April Philadelphia Fed business outlook survey (expected +1.0 to 6.0 after March’s -0.2 to 5.0), (4) the G-20’s 2-day meeting in Washington that begins today in Washington.
