OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 +0.23%) this morning are up +0.19% and European stocks are up +0.31% after Eurozone manufacturing activity this month expanded at the fastest pace in 10 months. Upbeat comments from St. Louis Fed President Bullard also gave stocks a lift when he said he expects the U.S. economy to grow at a 3.0% rate this year and that falling unemployment will herald a “boom time.” Asian stocks closed mixed: Japan -0.21%, Hong Kong -0.39%, China +0.02%, Taiwan -0.27%, Australia +0.22%, Singapore +0.09%, South Korea +0.08%, India -0.11%. China’s Shanghai Stock Index eked out a gain for the tenth consecutive session and climbed to the highest in 6-3/4 years after weaker-than-expected manufacturing data bolstered speculation that the government will expand stimulus. The China Mar HSBC flash manufacturing PMI fell -1.5 to 49.2 and contracted at the fastest pace in 11 months. Commodity prices are mostly higher. May crude oil (CLK15 +0.63%) is up +0.82% and May gasoline (RBK15 +0.54%) is up +0.93%, both at 1-week highs. Apr gold (GCJ15 +0.46%) is up +0.52%. May copper (HGK15 +0.14%) is up +0.29%. Agriculture prices are mixed. The dollar index (DXY00 -0.25%) is down -0.36%. EUR/USD (^EURUSD) is up +0.36%. USD/JPY (^USDJPY) is down -0.29%. Jun T-note prices (ZNM15 +0.07%) are up +3.5 ticks.
The Eurozone Mar Markit manufacturing PMI rose +0.9 to 51.9, stronger than expectations of +0.5 to 51.5 and the fastest pace of expansion in 10 months. The Mar Markit composite PMI rose +0.8 to 54.1, stronger than expectations of +0.3 to 53.6 and the highest since the data series began in 2012.
The German Mar Markit/BME manufacturing PMI rose +1.3 to 52.4, stronger than expectations of +0.4 to 51.5 and the fastest pace of expansion in 8 months. The Mar Markit services PMI rose +0.6 to 55.3, stronger than expectations of +0.3 to 55.0 and the fastest pace of expansion in 6 months.
