OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 -0.13%) this morning are down -0.16% on signs the Fed is nearer to raising interest rates after comments from Cleveland Fed President Mester echoed Friday’s comments from Fed Chair Yellen that the U.S. economy is close to the point where it can support higher interest rates. Stock prices recovered from their worst levels on increased M&A activity after Charter Communications agreed to buy Time Warner Cable for about $55 billion.European stocks are little changed with gains held in check as Spanish bank stocks slumped after local elections in Spain showed growing support for anti-austerity parties, while the 10-year Greek bond yield climbed to a 4-week high of 11.97% amid an impasses in negotiations for Greek bailout funds after ECB Governing Council member Hansson said an agreement on Greece is “not in sight yet.” Asian stocks closed mostly higher: Japan +0.12%, Hong Kong +0.92%, China +2.02%, Taiwan +0.25%, Australia +0.91%, Singapore -0.03%, South Korea -0.23%, India -0.41%. Japan’s Nikkei Stock Index rallied up to a new 15-year high as exporters surged after the yen fell to a 7-3/4 year low against the dollar. China’s Shanghai Stock Index pushed up to a 7-1/3 year high on optimism that government plans to boost foreign access to markets will boost inflows after the government announced Friday that cross-border sales of stock funds will begin Jul 1. China’s government also announced a stock exchange link between Shenzhen and Hong Kong will start next year.
Commodity prices are mostly lower with the rally in the dollar. Jul crude oil (CLN15 -0.64%) is down -0.52% and Jul gasoline (RBN15 -0.17%) is down -0.17%. Metals prices are weaker. Jun gold (GCM15 -0.80%) is down -0.81% at a 1-1/2 week low. Jul copper (HGN15 -0.69%) is down -0.59%. Agricultural prices are mixed.
The dollar index (DXY00 +0.91%) is up +0.98% at a 4-week high. EUR/USD (^EURUSD) is down -0.57% at a 4-week low. USD/JPY (^USDJPY) is up +0.80% at a 7-3/4 year high.
Jun T-note prices (ZNM15 +0.23%) are up +9 ticks.
