OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 +0.50%) this morning are up +0.45% on speculation that Wednesday’s weaker-than-expected U.S. Apr retail sales may keep the Fed from raising interest rates. European stocks are down -0.01% amid a stronger euro as EUR/USD climbed to a 2-3/4 month high. Another negative for European stocks is an increase in the 10-year German bund yield to a 1-week high of 0.755%. Greece’s ASE Stock Index is up +1.19% after Greek Finance Minister Varoufakis said his government agrees with its creditors on most issues. Asian stocks closed mostly lower: Japan -0.98%, Hong Kong +0.14%, China +0.06%, Taiwan -1.16%, Australia -0.33%, Singapore +0.08%, South Korea +0.17%, India -0.17%. Most Asian bourses weakened as exporters declined after a weak U.S. retail sales report raised concern about U.S. economic growth and demand for Asian goods.
Commodity prices are mostly higher due to a weaker dollar. Jun crude oil (CLM15 +0.13%) is up +0.12% and Jun gasoline (RBM15 +0.95%) is up +0.72%. Metals prices are mixed. Jun gold (GCM15 -0.14%) is up +0.07% at a 1-1/4 month high. Jul copper (HGN15 -0.24%) is down -0.19%. Agriculture prices are higher.
The dollar index (DXY00 -0.30%) is down -0.51% at a new 3-1/2 month low. EUR/USD (^EURUSD) is up +0.67% at a 2-3/4 month high. USD/JPY (^USDJPY) is up +0.07% and GBP/USD is up +0.31% at a 5-1/2 month high.
Jun T-note prices (ZNM15 +0.06%) are up +4 ticks.
Greek Finance Minister Varoufakis said that Greece agrees with its creditors on most issues and that Greece “will sink” without reforms. He added that Greece needs a debt “redesigning” that will substantially extend repayment deadlines, with possible solutions including bond swaps. Varoufakis insists that he will reject any deal with international bailout creditors that does not help his country exit its economic crisis. According to an official familiar with the matter, Greece has to raise at least 3 billion euros to meet minimum budget targets acceptable by creditors.
