OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 -0.31%) are down -0.46% and European stocks are down -0.95% at a 3-3/4 month low as Greece and its creditors failed to break an impasse in debt negotiations. A slide in Greek bank stocks pushed Greece’ ASE Stock Index down -3.36% and the yield on the Greek 10-year bond climbed to a 1-3/4 month high of 13.07% as Greek default concerns increased after Greek Finance Minister Varoufakis told the Bild newspaper that Greece has no plans to unveil new proposals to end the stalemate in its debt negotiations. European stocks were also pressured by a decline in automakers after data showed Eurozone May new car sales rose at the slowest pace in 6 months. Also, German investor confidence fell for a third month as the German Jun ZEW survey expectations of economic growth fell to a 7-month low. Asian stocks closed mostly lower: Japan -0.64%, Hong Kong -1.10%, China -3.47%, Taiwan -0.50%, Australia -0.05%, Singapore -0.75%, South Korea -0.90%, India +0.38%. China’s Shanghai Composite Index tumbled to a 1-1/2 week low amid concern that valuations are outstripping earnings growth.
Commodity prices are mixed. Jul crude oil (CLN15 +0.34%) is up +0.62%, Jul gasoline (RBN15 +0.37%) is up +0.53%. Metals prices are lower. Aug gold (GCQ15 -0.22%) is down -0.21%. Jul copper (HGN15 -0.72%) is down -0.83% at a 2-3/4 month low after LME copper inventories jumped +4,200 MT to a 1-week high of 318,600 MT. Agricultural prices are higher on concern that heavy rains in the Midwest flooded newly planted fields.
The dollar index (DXY00 +0.17%) is up +0.17%. EUR/USD (^EURUSD) is down -0.20%. USD/JPY (^USDJPY) is up +0.11%.
Sep T-note prices (ZNU15 +0.24%) are up +8.5 ticks at a 1-week high as the fall in global equity markets boosted the safe-haven demand for T-notes.
Speaking before the European Parliament in Brussels, ECB President Draghi said that Europe needs a “strong and comprehensive agreement with Greece, and we need this very soon.” He added that “the ball lies squarely in the camp of the Greek government to take the necessary steps.”
