OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU17 +0.33%) this morning are up +0.31% and European stocks are higher by +0.91% on signs of strength in global manufacturing activity. A gauge of Chinese manufacturing activity unexpectedly rose above the boom/bust level of 50.0 last month, while Eurozone Jun Markit manufacturing PMI was revised higher to its fastest pace of expansion in over 3 years. Energy stocks are also leading the overall market higher with Aug WTI crude oil (CLQ17+0.33%) up +0.09% at a 2-week high. Asian stocks settled mostly higher: Japan +0.11%, Hong Kong +0.08%, China +0.11%, Taiwan +0.17%, Australia -0.65%, Singapore -0.09%, South Korea +0.20%, India +0.97%. China’s Shanghai Composite climbed to a 2-1/2 month high after the Jun Caixin (flash) manufacturing PMI rose more than expected. Japanese stocks moved higher as exporters gained when USD/JPY rose to a 1-1/2 month high, and after Japan Q2 Tankan large manufacturing business conditions rose +5 to 17, the highest in over 3-years.
The dollar index (DXY00 +0.47%) is up +0.47%. EUR/USD (^EURUSD) is down -0.45%. USD/JPY (^USDJPY) is up +0.52% at a 1-1/2 month high as the yen weakened following the unexpected loss by Japan Prime Minister Abe’s Liberal Democratic Party in an election for Tokyo’s assembly, which fueled speculation Prime Minister Abe may resort to fresh economic stimulus to win support.
Sep 10-year T-note prices (ZNU17 -0.11%) are down -4 ticks to a 1-1/2 month low as strength in stock prices saps the safe-haven demand for T-notes.
The Eurozone Jun Markit manufacturing PMI was revised upward to 57.4 from the previously reported 57.3, the fastest pace of expansion since the data series began in 2014.
The China Jun Caixin manufacturing PMI rose +0.8 to 50.4, stronger than expectations of +0.2 to 49.8.
The Japan Q2 Tankan large manufacturing business conditions rose +5 to 17, stronger than expectations of +3 to 15 and the highest since Q1 of 2014.
