OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 -0.07%) this morning are down -0.10% and European stocks are down -0.78% at a 3-1/2 month low. The ongoing Greek debt crisis continues to weigh on stocks as the Greek government needs to seal an accord with creditors or get another extension before the end of the month. The 10-year Greek bond yield rose +17 bp to a 4-session high of 11.39%. Asian stocks closed mixed: Japan -0.02%, Hong Kong +0.21%, China +2.17%, Taiwan +0.30%, Australia close for holiday, Singapore -0.40%, South Korea -0.29%, India -0.92%. China’s Shanghai Composite rose to a 7-1/3 year high on speculation that MSCI Inc. will include A shares of Chinese stocks in its emerging-market indexes. China, through its companies listed in Hong Kong, accounts for more than 25% of the emerging-market benchmark, the largest weighting in the gauge. MSCI has kept China’s A shares out of its indexes due to limitations on their tradability and will decide on Tuesday whether to include China’s locally stocks in its equity benchmarks.
Commodity prices are mixed. Jul crude oil (CLN15 -0.68%) is down -0.88%. Jul gasoline (RBN15 -0.49%) is down -0.55%. Metals prices are mixed. Aug gold (GCQ15 +0.43%) is up +0.39%. Jul copper (HGN15 -0.11%) is down -0.28%. Agricultural prices are higher.
The dollar index (DXY00 -0.13%) is down -0.02%. EUR/USD (^EURUSD) is up +0.21% on upbeat comments from ECH Governing Council member Nowotny. USD/JPY (^USDJPY) is down -0.26% on stronger-than-expected Q1 Japan GDP.
Sep T-note prices (ZNU15Â +0.05%) are up +4 ticks.
ECB Governing Council member Nowotny said the Eurozone’s economic downturn “is over.” He said the Eurozone has overcome the risk of deflation as the ECB’s asset purchases have had the desired effect. He added that economic development in Europe is “positive,” although challenges remain.
