OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 +0.07%) this morning are slightly higher by +3.75 points (+0.18%) as the market hopes for a relatively dovish outcome from today’s FOMC meeting. The EuroStoxx 50 index is down -0.35% this morning as Greek woes continue and the Greek central bank warned that Greece would be put on a “painful” course towards default and a Greek exit from the Eurozone if it cannot reach an agreement with its creditors. Asian stocks today closed mostly higher: Japan -0.19%, Hong Kong +0.70%, China +1.65%, Taiwan -0.25%, Australia +1.08%, Singapore +0.84%, South Korea +0.24%, India +0.55%, Turkey +0.46%.
The dollar index (DXY00 -0.15%) is down -0.20 points (-0.21%) this morning with EUR/USD (^EURUSD) up +0.0009 (+0.08%) and USD/JPY (^USDJPY) up +0.60 (+0.49%). Sep 10-year T-note prices (ZNU15 -0.10%) are down -4.5 ticks.
Commodity prices are up +0.59% this morning due to part to a weaker dollar. Jul crude oil (CLN15 +1.72%) is up +1.15 and Jul gasoline (RBN15+2.09%) is up sharply by +0.0516 (+2.43%) as the market looks for the 7th consecutive decline in U.S. crude oil inventories in today’s weekly EIA report. Metals prices are mixed with Aug gold (GCQ15 -0.21%) down 2.7 (-0.23%), July silver (SIN15 -0.19%) down -0.025 (-0.16%), and Jul copper (HGN15+0.23%) up +0.010 (+0.38%).
Grain prices are higher this morning on concern that rain from Tropical Storm Bill will delay planting. Softs are mixed with sugar and coffee higher, but with cocoa and cotton lower.
The Greek central bank released a report today saying that Greece would be put on a “painful” course towards default and an exit from the Eurozone if the Greek government does not reach a new bailout agreement with its creditors. The bank said that there was a Greek bank deposit outflow of about 30 billion euros between October and April.
The British pound today rallied by +0.6% to a 1-month high after the BOE’s June policy meeting minutes showed that BOE members believe that the restraints on the economy and inflation are fading. The MPC said that factors holding back inflation were “likely to dissipate fairly shortly,” and could strengthen “notably” by year-end. The MPC added, “The strength of the headwinds to growth had begun to ease. As they ease further over time, the interest rate required to keep the economy operating at normal levels of capacity and inflation at the target was likely to continue to rise.”
