Sep E-mini stock futures this morning are up +7.00 points (+0.24%) and European stocks are up +0.39% at a 2-week high as strength in energy stocks leads the overall market higher. Oct WTI crude oil is up +1.31% at a 2-week high due to dollar weakness and global supply concerns as strikes by oil platform workers at Total SA’s oil platforms in the North Sea may reduce oil supplies from the region. Trading activity was muted ahead of this morning’s speech from Fed Chair Powel at the Fed’s annual symposium at Jackson Hole, WY. Limiting the upside in stocks are trade concerns after 2-days of talks in Washington between Chinese and U.S. trade representatives failed to resolve any trade issues and a person familiar with the matter said no further talks are scheduled and that Chinese officials raised the possibility that no further negotiations could happen until after the U.S. mid-term elections in November. Asian markets settled mostly higher as China’s Shanghai Composite closed up +0.18% at a 1-week high and Japan’s Nikkei Stock Index closed up +0.85% at a 2-week high. A rally in bank stocks and a stronger yuan versus the dollar pushed the Shanghai Composite higher, while a +0.08% rally in USD/JPY to a 2-1/2 week high fueled gains in Japanese exporters to push the Nikkei Stock Index higher. The yen weakened on speculation the BOJ may maintain its QE program after Japan Jul national CPI rose less than expected. The dollar index is down -0.28%. EUR/USD is up +0.36%. Sep 10-year T-notes are down -4.5 ticks.
Japan Jul national CPI rose +0.9% y/y, weaker than expectations of +1.0% y/y. Jul national CPI ex fresh food rose +0.8% y/y, weaker than expectations of +0.8% y/y. Jul national CPI ex fresh food & energy rose +0.3% y/y, right on expectations.
Japan Jul PPI services rose +1.1% y/y, unch from Jun and weaker than expectations of +1.2% y/y.
Morning Markets Last Chg %chg
E-mini S&P 500 (U8) 2865.00 7.00 0.24%
Europe Euro Stoxx 50 3432.71 13.45 0.39%
Japan Nikkei Index 22602 191 0.85%
China Shanghai Comp. 2729 5 0.18%
10yr T-notes (CBT)(U8) 120.145 -0.045 -0.12%
U.S. Dollar Index 95.398 -0.268 -0.28%
Euro FX (EUR/USD) 1.1581 0.0041 0.36%
Dollar-yen (USD/JPY) 111.38 0.09 0.08%
Sterling (GBP/USD) 1.2853 0.0042 0.33%
WTI Crude Oil (V8) 68.72 0.89 1.31%
Brent Crude Oil (V8) 75.70 0.97 1.30%
Gasoline (Nymex) (V8) 1.9759 0.0208 1.06%
Gold (Comex) (Z8) 1197.9 3.9 0.33%
Silver (Comex) (U8) 14.600 0.058 0.40%
Copper (Comex) (U8) 2.675 0.021 0.77%