OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 -0.23%) this morning are down -0.54% at a 1-month low and European stocks are down -1.35% at a 2-1/2 month low amid carry-over selling from Wednesday’s rout after Fed Chair Yellen said equity market valuations are high. The slide in global government bond markets continued as well after Fed Chair Yellen said that long-term rates are low and could jump when the Fed begins to raise interest rates. The German 10-year bund yield climbed to a 4-3/4 month high of .777% and the U.S. 10-year T-note yield rose to a 4-3/4 month high of 2.31%. On the positive side, Greece’s ASE Stock Index is up +2.39% as bank stocks rose after the ECB boosted emergency funding to Greece’s central bank. The yield on the Greek 10-year bond fell -33 bp to 10.90% after the ECB raised the cap on Emergency Liquidity Assistance to the Greek central bank by 2 billion euros to 78.9 billion euros. Asian stocks closed lower: Japan -1.23%, Hong Kong -1.27%, China -2.77%, Taiwan -1.16%, Australia -0.82%, Singapore -0.78%, South Korea -0.59%, India -0.44%. China’s Shanghai Composite slid to a 3-week low after Morgan Stanley downgraded Chinese stocks for the first time in 7 years to ‘Equalweight’ from ‘Overweight,’ citing the weakest corporate profits since 2009.
Commodity prices are mixed. Jun crude oil (CLM15 +0.13%) is down -0.03% and Jun gasoline (RBM15 -0.27%) is down -0.39%. Metals prices are mixed. Jun gold (GCM15 -0.42%) is down -0.60%. Jul copper (HGN15 +0.12%) is up +0.29%. Agriculture prices are mixed.
The dollar index (DXY00 +0.10%) is up +0.02%. EUR/USD (^EURUSD) is down -0.15%. USD/JPY (^USDJPY) is down -0.28%.
Jun T-note prices (ZNM15 +0.11%) are down -5.5 ticks at a 1-3/4 month low on negative carry-over from a slide in global bond markets. The yield on the 10-year Germany bund jumped to a 4-3/4 month high on .777% and has surged over 60 bp in the past week.
