OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 -0.25%) this morning are down -0.20% and European stocks are down -0.13%, both at 2-week lows, although prices recovered from their worst levels on optimism over an end to the Greek credit impasse after EU Economic Commissioner Moscovici said there was “real progress” in talks. IMF chief Lagarde met with German Chancellor Merkel, ECB President Draghi and European Commission President Juncker at the German Chancellery in Berlin on Monday night in an attempt to forge a plan to unlock bailout funds for Greece. Although Greece says it can make a debt repayment due to the IMF on Friday, it is the smallest of four payments due this month that total almost 1.6 billion euros. Asian stocks closed mixed: Japan -0.13%, Hong Kong -0.47%, China +1.69%, Taiwan -0.12%, Australia -1.73%, Singapore -1.61%, South Korea -0.95%, India -2.37%. India’s BSE Sensex 30 Stock Index fell over 2% even after the RBI lowered interest rates for the third time this year as the central bank cut its growth estimates for India.
Commodity prices are mostly higher. Jul crude oil (CLN15 +1.31%) is up +0.95% at a 2-week high and Jul gasoline (RBN15 +0.33%) is up +0.11%. Metals prices are higher. Aug gold (GCQ15 +0.14%) is up +0.13% and Jul copper (HGN15 +0.17%) is up +0.15%. Agricultural prices are stronger.
The dollar index (DXY00 -0.59%) is down -0.53%. EUR/USD (^EURUSD) is up +0.95% on reduced deflation concerns after Eurozone consumer prices rose or the first time in 6 months. USD/JPY (^USDJPY) is up +0.02% at a fresh 12-1/2 year high.
Sep T-note prices (ZNU15 -0.25%) are down -6.5 ticks at a 1-week low.
The Reserve Bank of India (RBI) cut its benchmark repurchase rate by 25 bp to 7.25%, right on expectations and the third interest rate cut this year. The RBI also lowered its gross value added (GVA), a component of GDP watched closely by the RBI, to 7.6% in the year though Mar 2016 from a previous estimate of 7.8%.
