Sep E-mini stock futures this morning are down -17.25 points (-0.63%) and European stocks are down -1.06% as global stocks fall on concern as escalation of trade tensions will curb economic growth. According to people familiar with the matter, Treasury Secretary Mnuchin is said to declare China’s investments in U.S. companies involved in technologies such as new-energy vehicles, robotics and aerospace a threat to economic and national security under the Committee on Foreign Investments or CFIUS. Weakness in mining stocks and metal producers in also weighing on the overall market after July COMEX copper dropped -0.17% to a 2-1/2 month low on concern global trade friction will reduce demand for industrial metals. A decline in German business confidence also weighed on European stocks after the German Jun IFO business climate fell -0.5 to a 15-month low of 101.08. Asian stock markets closed lower as China’s Shanghai Composite settled down -1.05% and Japan’s Nikkei Stock Index settled down -0.79%. Chinese stocks moved lower despite the action by the PBOC to cut banks’ reserve requirements to 15.50% from 16.00%, although the yuan tumbled to a 5-3/4 month low of 6.5433 against eh dollar on the action. Weakness in Japanese exporters weighed on the Nikkei Stock Index after USD/JPY slid -0.34% to a 2-week low, which undercut the earnings prospects of exporters. The dollar index is up +0.01%. EUR/USD is up +0.20%. Sep 10-year T-notes are up +6.5 ticks.
The German Jun IFO business climate fell -0.5 to a 15-month low of 101.08, right on expectations. The Jun IFO expectations were unch at a 2-1/4 year low of 98.6, stronger than expectations of -0.5 to 98.0. The Jun IFO current assessment fell -1.0 to a 1-year low of 105.1, weaker than expectations of -0.4 to 105.6.
ECB Chief Economist Praet said the ECB expressed at its latest meeting “an anticipation that net asset purchases would end at the end of the year. We didn’t say we were now deciding to stop the program in December.” He also said that interest rates will remain at current levels “as long as necessary to ensure that inflation developments remain in line with current expectations of a sustained adjustment path.”
Morning Markets Last Chg %chg
E-mini S&P 500 (U8) 2742.25 -17.25 -0.63%
Europe Euro Stoxx 50 3405.19 -36.41 -1.06%
Japan Nikkei Index 22338 -179 -0.79%
China Shanghai Comp. 2859 -30 -1.05%
10yr T-notes (CBT)(U8) 120.010 0.065 0.17%
U.S. Dollar Index 94.531 0.011 0.01%
Euro FX (EUR/USD) 1.1674 0.0023 0.20%
Dollar-yen (USD/JPY) 109.60 -0.37 -0.34%
Sterling (GBP/USD) 1.3264 0.0003 0.02%
WTI Crude Oil (Q8) 68.47 -0.11 -0.16%
Brent Crude Oil (Q8) 74.13 -1.42 -1.88%
Gasoline (Nymex) (Q8) 2.0247 -0.0292 -1.42%
Gold (Comex) (Q8) 1269.4 -1.3 -0.10%
Silver (Comex) (N8) 16.390 -0.069 -0.42%
Copper (Comex) (N8) 3.022 -0.005 -0.17%