Sep E-mini stock futures this morning are up +3.50 points (+0.13%) at a 3-3/4 month high on optimism that S&P 500 Q2 earnings, which will begin to be released later this week, will surprise to the upside. Also, energy stocks are stronger with Aug WTI crude oil up +0.42% on concern about tightening global supplies. European stocks are up +0.32% at a 3-week high, although gains were limited after the German Jul ZEW expectations of economic growth fell -8.6 to a 5-3/4 year low of -24.7. Asian markets settled mostly higher as China’s Shanghai Composite closed up +0.44% and Japan’s Nikkei Stock Index closed up +0.66% at a 1-week high. Stronger-than-expected China wholesale prices are positive for economic growth prospects and gave Chinese stocks a lift after China Jun PPI rose +4.7% y/y, the biggest increase in 6 months. Strength in Japanese exporter stocks lifted the overall market as USD/JPY climbed +0.43% to a 1-1/2 month high, which is supportive for exporters’ earnings prospects. The dollar index is up +0.35%. EUR/USD is down -0.50% on the weaker-than-expected German Jul ZEW expectations of economic growth. Sep 10-year T-notes are down -1.5 ticks.
China Jun CPI rose +1.9% y/y, right on expectations. Jun PPI rose +4.7% y/y, stronger than expectations of +4.5% y/y and the biggest increase in 6 months.
The German Jul ZEW expectations of economic growth fell -8.6 to a 5-3/4 year low of -24.7, weaker than expectations of -2.8 to -18.9.
UK May manufacturing production rose +0.4% m/m, weaker than expectations of +0.7% m/m. May industrial production fell -0.4% m/m, weaker than expectations of +0.5% m/m.
France May manufacturing production unexpectedly fell -0.6% m/m, weaker than expectations of +0.3% m/m. May industrial production fell -0.2% m/m, weaker than expectations of +0.7% m/m.
Morning Markets Last Chg %chg
E-mini S&P 500 (U8) 2791.00 3.50 0.13%
Europe Euro Stoxx 50 3471.66 11.22 0.32%
Japan Nikkei Index 22197 145 0.66%
China Shanghai Comp. 2828 13 0.44%
10yr T-notes (CBT)(U8) 120.025 -0.015 -0.04%
U.S. Dollar Index 94.405 0.328 0.35%
Euro FX (EUR/USD) 1.1692 -0.0059 -0.50%
Dollar-yen (USD/JPY) 111.33 0.48 0.43%
Sterling (GBP/USD) 1.3230 -0.0030 -0.23%
WTI Crude Oil (Q8) 74.16 0.31 0.42%
Brent Crude Oil (U8) 78.94 0.87 1.11%
Gasoline (Nymex) (Q8) 2.1651 0.0166 0.77%
Gold (Comex) (Q8) 1250.3 -9.3 -0.74%
Silver (Comex) (U8) 15.955 -0.184 -1.14%
Copper (Comex) (U8) 2.820 -0.031 -1.07%