OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU14 -0.35%) this morning are down -0.36% and European stocks are down -0.41% ahead of this morning’s U.S. Aug non-farm payrolls. Losses in European stocks were limited after German Jul industrial production rose more than expected by the most in 2-1/3 years. Also, Ukraine President Poroshenko voiced “careful optimism” that talks today with pro-Russian rebels will set the course for a cease-fire. Asian stocks closed mostly lower: Japan -0.05%, Hong Kong -0.23%, China +0.95%, Taiwan -0.22%, Australia -0.58%, Singapore -0.14%, South Korea-0.42%, India -0.22%. China’s Shanghai Stock Index bucked the trend of lower Asian equity markets and rose for a sixth day to its highest in 1-1/4 years amid speculation the government is boosting measures to support the economy. Commodity prices are mostly higher. Oct crude oil (CLV14 +0.03%) is up +0.31%. Oct gasoline (RBV14 +0.73%) is up +0.77%. Dec gold (GCZ14 -0.02%) is down -0.01. Dec copper (HGZ14 +0.13%) is up +0.17% on signs of tighter global supplies after weekly Shanghai copper inventories fell -5,442 MT to 74,336 MT, a 2-3/4 year low. Agriculture and livestock prices are higher with Oct hogs up +1.44% at a 1-month high. The dollar index (DXY00 -0.09%) is down -0.06%. EUR/USD (^EURUSD) is up +0.06%. USD/JPY (^USDJPY) is down -0.06%. Dec T-note prices (ZNZ14 -0.04%) are down -1.5 ticks.
Speaking late Thursday in New York, Fed Governor Powell said the U.S. labor market has “improved substantially” and that “significant parts” of the FOMC statement need to change.
German Jul industrial production rose +1.9% m/m, more than four times expectations of +0.4% m/m and the largest monthly increase in 2-1/3 years. On an annual basis, Jul industrial production rose +2.5% y/y, much better than expectations of +0.6% y/y.
