OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU14 +0.06%) this morning are up +0.04% on increased optimism in the U.S. economic outlook, while European stocks are down -0.16% after a gauge of German consumer confidence fell more than expected. Stocks received a boost on comments from Russian President Putin who met his Ukrainian counterpart in Belarus to discuss an end to the ongoing conflict and said that “Russia, for its part, will do everything for this peace process.” European bond markets continue to rally as 10-year yields from Germany, Italy, Spain and France all fell to record lows on speculation the ECB will expand stimulus. Asian stocks closed mostly higher: Japan +0.09%, Hong Kong -0.62%, China +0.15%, Taiwan +0.98%, Australia +0.24%, Singapore +0.55%, South Korea +0.28%, India +0.44%. Commodity prices are mostly higher. Oct crude oil (CLV14 +0.29%) is up +0.28%. Oct gasoline (RBV14 +0.33%) is up +0.23%. Dec gold (GCZ14 +0.05%) is up +0.12%. Sep copper (HGU14 -0.06%) is up +0.06%. Agriculture and livestock prices are mixed. The dollar index (DXY00 -0.14%) is down -0.13% as it retreats from an 11-1/2 month high. EUR/USD (^EURUSD) is up +0.11% as it recovers from an 11-1/2 month low after comments from German Finance Minister Schaeuble fueled short covering when he said that comments made by ECB President Draghi that advocate support for Eurozone fiscal policy were “over-interpreted.” USD/JPY (^USDJPY) is down -0.12%. Sep T-note prices (ZNU14 +0.09%) are up +4.5 ticks on carry-over support from a rally in European government bond markets.
German Finance Minister Schaeuble said in an interview in the Passauer Neue Presse that comments made in Jackson Hole, Wyoming by ECB President Draghi were “over-interpreted” after he said that fiscal policy could play a greater role in promoting growth.
The German Jul import price index fell -0.4% m/m and -1.7% y/y, a faster pace of decline than expectations of -0.1% m/m and -1.4% y/y.
