OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU14 +0.30%) this morning are up +0.41% at a fresh record high and European stocks are up +1,24% at a 1-3/4 month high after Russia and Ukraine discussed steps toward a cease fire. European stocks also gained on speculation the ECB may add to stimulus measures when it meets Thursday after Eurozone Jul retail sales and Aug services growth slowed more than expected. The ruble strengthened and Russia’s Micex Stock Index surged over 2% after Ukraine President Poroshenko and Russian President Putin discussed the steps needed for an immediate cease-fire in the contested eastern Ukraine region of Donbass. Asian stocks closed mostly higher: Japan +0.38%, Hong Kong +2.30%, China +0.94%, Taiwan +0.54%, Australia -0.04%, Singapore +0.62%, South Korea -0.13%, India +0.45%. China’s Shanghai Stock Index rose to a 1-1/4 year high after the China Aug non-manufacturing index showed growth picked up and Japan’s Nikkei Stock Index advanced to a 7-1/4 month high led by a rally in exporters after the yen fell to a 7-3/4 month low against the dollar, which boosts the prospects for exporters’ earnings. Commodity prices are mixed. Oct crude oil (CLV14 +1.09%) is up +0.93%. Oct gasoline (RBV14 +1.29%) is up +1.26%. Dec gold (GCZ14 +0.36%) is up +0.24%. Dec copper (HGZ14 -0.43%) is down -0.29% at a 2-week low on signs of increased global supplies after LME copper inventories jumped +7,000 MT to a 1-1/4 month high. Agriculture prices are lower with Dec corn down -0.62% at a 3-week low and Nov soybeans down -0.51% at a 1-week low after the weekly USDA Crop Progress report released late yesterday showed crop conditions improved over the past week. Livestock prices are higher. The dollar index (DXY00 -0.18%) is down -0.15%. EUR/USD (^EURUSD) is up +0.11%. USD/JPY (^USDJPY) is up +0.02% at a 7-3/4 month high. Dec T-note prices (ZNZ14 -0.25%) are down -10.5 ticks at a 3-week low.
Eurozone Jul retail sales fell -0.4% m/m, weaker than expectations of -0.3% m/m and the largest decline in 7 months. On an annual basis, Jul retail sales rose +0.8% y/y, less than expectations of +0.9% y/y.
