Sep E-mini stock futures this morning are up +8.50 points (+0.31%) and European stocks are up +1.24% as a rally in crude oil boosts energy stocks. Aug WTI crude oil is up +1.23% at a fresh 3-1/2 year high on concern over global supplies with diminished oil output in Libya and Venezuela. Increased crude output by Saudi Arabia may be insufficient to make up for losses from other OPEC members as Saudi Arabian Jun crude production rose by 330,000 bpd to 10.3 million bpd, but overall OPEC Jun crude production rose only +30,000 bpd. A recovery in China’s Shanghai Composite also gave U.S. and European stocks a boost. The Shanghai Composite closed up +0.41% as it recovered from a new 2-1/3 year low after the yuan moved higher. The yuan rebounded from a 10-3/4 month low of 6.7214 per dollar and moved higher after PBOC Governor Yi Gang said China will keep the currency stable at an equilibrium level and the PBOC will maintain a prudent, neutral policy stance. Japan’s Nikkei Stock Index close down -0.12% at a 2-3/4 month low on concern a trade war between the U.S. and China will curtail global economic growth that hurts Japanese exporters. The dollar index is down -0.19%. EUR/USD is up +0.09%. USD/JPY is down -0.06%. Sep 10-year T-notes are down -3 ticks.
Eurozone May PPI rose +0.8% m/m, stronger than expectations of +0.5% m/m and the largest increase in 16-months.
Eurozone May retail sales were unch m/m and up +1.4% y/y, weaker than expectations of +0.1% m/m and +1.6% y/y.
The UK Jun Markit/CIPS construction PMI unexpectedly rose +0.6 to a 7-month high of 53.1, stronger than expectations of no change at 52.5.
Morning Markets Last Chg %chg
E-mini S&P 500 (U8) 2735.75 8.50 0.31%
Europe Euro Stoxx 50 3414.10 41.89 1.24%
Japan Nikkei Index 21786 -26 -0.12%
China Shanghai Comp. 2787 11 0.41%
10yr T-notes (CBT)(U8) 119.315 -0.030 -0.08%
U.S. Dollar Index 94.690 -0.181 -0.19%
Euro FX (EUR/USD) 1.1650 0.0011 0.09%
Dollar-yen (USD/JPY) 110.83 -0.07 -0.06%
Sterling (GBP/USD) 1.3186 0.0043 0.33%
WTI Crude Oil (Q8) 74.85 0.91 1.23%
Brent Crude Oil (U8) 78.11 0.81 1.05%
Gasoline (Nymex) (Q8) 2.1183 0.0135 0.64%
Gold (Comex) (Q8) 1247.9 6.2 0.50%
Silver (Comex) (U8) 15.980 0.145 0.92%
Copper (Comex) (U8) 2.954 0.010 0.32%