Overnight Market Deveopments #Futures, Financials, Metals, Energy

Sep E-mini stock futures this morning are up +1.00 point (+0.04%) at a new 4-month high and European stocks are up +0.35%.  Strength in technology stocks is lifting the overall market with the Nasdaq Composite set to open at a new record high this morning.  Also, JPMorgan Chase is up over 1% in pre-market trading and is boosting bank stocks after it reported better-than-expected Q2 earnings.  U.S. stocks fell back from their best levels after China reported its trade surplus with the U.S. rose to a record $28.97 billion in Jun and that China’s exports to the U.S. in Jun climbed to a record $42.62 billion, which highlights the growing trade tensions between the U.S. and China.  Energy stocks are weaker as well with Aug WTI crude oil down -0.24% on concern demand may be slowing in China, the world’s second-largest crude consumer, after China Jun crude imports fell -12% m/m to 8.39 million bpd, the lowest in 6-months.  Asian stocks settled mixed as China’s Shanghai Composite closed down -0.23% and Japan’s Nikkei Stock Index closed up +1.85% at a 3-week high.  Trade tensions along with the decline in the yuan to a 1-1/2 week low against the dollar undercut Chinese stocks, while a rally in exporters boosted Japan’s Nikkei Stock Index after USD/JPY rose +0.04% to a new 6-month high.  The dollar index is up +0.32% at a 2-week high.  EUR/USD is down -0.37% at a 1-1/2 week low.  Sep 10-year T-notes are up +4.5 ticks.  

The China Jun trade balance was in surplus by +$41.61 billion, wider than expectations of +$27.72 billion and the largest surplus in 6-months.  Jun exports rose +11.3% y/y, stronger than expectations of +9.5% y/y.  Jun imports rose +14.1% y/y, weaker than expectations of +21.3% y/y.

China Jun new yuan loans were 1.84 trillion yuan, stronger than expectations of +1.535 trillion yuan.  Jun aggregate financing rose +1.18 trillion yuan, weaker than expectations of +1.40 trillion yuan.