OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 +0.19%) this morning are up +0.22% ahead of this week’s 2-day FOMC meeting where the Fed may provide clues as to the timing on an expected interest rate increase. European stocks are up +0.09%, led by a +2.6% increase in HSBC after a report said that it’s considering spinning off its UK retail bank for 20 billion pounds ($30 billion). Gains in European stocks were limited after Deutsche Bank fell 3% when it scrapped its profitability goal for next year and set a lower target for the medium term. The Greek debt situation is another concern for European markets as Greece has to pay pensioners and state workers this week and is counting on deposits of its local governments to meet end-of-month payments of over 1.5 billion euros. Eurozone finance ministers late Friday said they won’t disburse more aid until bailout terms are met by Greece’s government. Asian stocks closed mixed: Japan -0.18%, Hong Kong +1.33%, China +3.04%, Taiwan +0.60%, Australia +0.83%, Singapore +0.08%, South Korea -0.37%, India -0.95%. China’s Shanghai Composite Index rose to a fresh 7-year high on speculation the government will expand stimulus to revive economic growth.
Commodity prices are mixed. Jun crude oil (CLM15 +0.03%) is down -0.26% Jun gasoline (RBM15 -0.02%) is down -0.24%. Losses were contained on concern that escalation of Saudi Arabia’s military campaign in Yemen may disrupt Middle Eastern crude supplies after the Saudi Press Agency reported that Saudi Arabia deployed National Guard troops to its southern borders. Metals prices are higher. Jun gold (GCM15 +0.82%) is up +0.60% and May copper (HGK15 +0.20%) is up +0.29%. Agriculture prices are mixed.
The dollar index (DXY00 +0.29%) is up +0.20%. EUR/USD (^EURUSD) is down -0.25%. USD/JPY (^USDJPY) is up +0.28%.
Jun T-note prices (ZNM15 -0.01%) are little changed, down -0.5 of a tick.
Fitch Ratings cut Japan’s sovereign-credit rating one notch to ‘A’ from ‘A+’ with a stable outlook, saying “the Japanese government did not include sufficient structural fiscal measures in its budget for the fiscal year” beginning this month to offset effects of the delay in the sales-tax increase.
