OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 +0.52%) are up +0.51% and European stocks are down -0.25% at a 1-1/2 week low as the markets attempt to stabilize following Monday’s sell-off. European stocks recovered from their lows after an official said European Commission President Juncker set out details to Greece on how it can still reach an accord with creditors. Greek banks and the Athens Stock Exchange remain closed and it is unlikely that Greece will make a $1.7 billion payment due to the IMF today. After midnight, Greece will also no longer be formally under the protection of the European bailout program. Asian stocks closed higher: Japan +0.63%, Hong Kong +1.09%, China +5.53%, Taiwan +0.94%, Australia +0.67%, Singapore +1.13%, South Korea +0.40%, India +0.49%.
Commodity prices are mixed. Aug crude oil (CLQ15 +0.57%) is up +0.60%, Aug gasoline (RBQ15 +1.06%) is up +0.97%. Metals prices are lower. Aug gold (GCQ15 -0.55%) is down -0.51%. Sep copper (HGU15 -1.12%) is down -1.04%. Agricultural prices are mixed.
The dollar index (DXY00 +0.40%) is up +0.47%. EUR/USD (^EURUSD) is down -0.53%. USD/JPY (^USDJPY) is down -0.12% at a fresh 1-month low.
Sep T-note prices (ZNU15 -0.11%) are down -3 ticks.
All eyes will be on the ECB if Greece is unable to pay its $1.7 billion debt payment due to the IMF by midnight tonight. The ECB has already pumped 89 billion euros of Emergency Liquidity Assistance into Greece and ECB may withdraw its lifeline to Greece’s banks if it misses the IMF debt payment. ECB Executive Board member Coeure told the Les Echos newspaper that “Greece’s exit from the Eurozone, which was a theoretical point, can unfortunately no longer be excluded.”
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Jun Milwaukee ISM (May was -0.38 to 47.70), (2) Apr S&P/CaseShiller composite-20 home price index (expected +0.80% m/m and +5.50% y/y after March’s +0.95% m/m and +5.04% y/y), (3) June Chicago PMI (expected +3.8 to 50.0 after May’s -6.1 to 46.2), and (4) June U.S. consumer confidence index from the Conference Board (expected +2.0 to 97.4 after May’s +1.1 to 95.4).
