Sep E-mini stock futures this morning are down -3.75 points (-0.13%) ahead of this morning’s U.S. payrolls report that is expected to be strong enough to allow the Fed to raise interest rates again at the Sep 25-26 FOMC meeting. European stocks are down -0.36% at a 5-1/4 month low, led by a slide in bank stocks, as ING Groep NV dropped more than 3% after the newspaper Het Financieele Dagblad reported the bank signaled to its managers its license to operate could be threatened because of information technology and working system problems. Weakness in German economic data also weighed on Europeans tocks after German Jul exports unexpectedly fell by the most in 5-months and after German Jul industrial production unexpectedly declined. Asian markets settled mixed as China’s Shanghai Composite closed up +0.40% and Japan’ Nikkei Stock Index close down -0.80% at a 2-week low. Chinese stocks moved higher on optimism President Trump will refrain from imposing additional tariffs on China after some top U.S. technology companies and retailers urged the Trump administration not to impose additional tariffs on Chinese goods. A public-consultation period ended Thursday night in the U.S., and the markets look to see if President Trump proceeds with imposing tariffs on another $200 billion of Chinese imports. Japanese stocks moved lower, led by losses in exporters, after USD/JPY fell to a 2-week low, which weakens Japanese exporters’ earnings prospects. The dollar index is down -0.10%. EUR/USD is down -0.03%. USD/JPY is up +0.07%. Dec 10-year T-notes are up +1.5 ticks.
The German Jul trade balance shrank to a surplus of +16.5 billion euros, narrower than expectations of +19.5 billion euros and the smallest surplus in 1-1/2 years. Jul exports unexpectedly fell -0.9% m/m, weaker than expectations of +0.3% m/m and the biggest decline in 5-months. Jul imports rose +2.8% m/m, stronger than expectations of +0.1% m/m and the largest increase in 2-3/4 years.
German Jul industrial production unexpectedly fell -1.1% m/m, weaker than expectations of +0.2% m/m.
Japan Jul labor cash earnings rose +1.5% y/y, weaker than expectations of +2.4% y/y. Jul real cash earnings rose +0.4% y/y, weaker than expectations of +1.1% y/y.
Morning Markets Last Chg %chg
E-mini S&P 500 (U8) 2875.25 -3.75 -0.13%
Europe Euro Stoxx 50 3283.92 -12.03 -0.36%
Japan Nikkei Index 22307 -181 -0.80%
China Shanghai Comp. 2702 11 0.40%
10yr T-notes (CBT)(Z8) 120.040 -0.015 -0.04%
U.S. Dollar Index 94.927 -0.094 -0.10%
Euro FX (EUR/USD) 1.1619 -0.0004 -0.03%
Dollar-yen (USD/JPY) 110.83 0.08 0.07%
Sterling (GBP/USD) 1.3006 0.0076 0.59%
WTI Crude Oil (V8) 67.94 0.17 0.25%
Brent Crude Oil (X8) 76.69 0.19 0.25%
Gasoline (Nymex) (V8) 1.9608 0.0098 0.50%
Gold (Comex) (Z8) 1207.5 3.2 0.27%
Silver (Comex) (Z8) 14.230 0.049 0.35%
Copper (Comex) (Z8) 2.633 -0.004 -0.15%