Sep E-mini stock futures this morning are up +16.25 points (+0.60%) and European stocks are up % at a 2-week high as automakers surge on a U.S. proposal to eliminate vehicle-imports tariffs on both sides of the Atlantic. BMW AG jumped 5% and Fiat Chrysler NV and Volkswagen were up more than 4% after German auto-industry executives met with the U.S. Ambassador to Germany who said that Washington was seeking talks with the EU on lowering car duties to zero, according to the Handelsblattt newspaper. European stocks also gained, and EUR/USD climbed +0.35% to a 1-week high after German May factors rose more than expected and posted their biggest increase in 5-months. Asian stocks settled lower as China’s Shanghai Composite closed down -0.91% and Japan’s Nikkei Stock Index closed down -0.78% at a 3-month low. The prospects that trade tensions will escalate between the U.S. and China weighed on Asian stocks markets on concern a trade war will undercut global trade and economic growth. The U.S. is set to levy tariffs on $34 billion of Chinese goods starting tomorrow and China’s General Administration of Customs said China’s proposed additional tariffs on some U.S. goods will become effective “immediately” after the U.S. imposes its new tariffs on Chinese products. The dollar index is down -0.16% at a 1-week low. USD/JPY is up +0.14%. Sep 10-year T-notes are down -5 ticks as the rally in stocks curbs safe-haven demand for government debt.
German May factory orders rose +2.6% m/m stronger than expectations of +1.1% m/m and the biggest increase in 5 months.
UK Jun new car registrations fell -3.5% y/y to 234,945 and year-to-date are down -6.3% at 1.313,994.
Morning Markets Last Chg %chg
E-mini S&P 500 (U8) 2729.50 16.25 0.60%
Europe Euro Stoxx 50 3453.91 41.88 1.23%
Japan Nikkei Index 21547 -170 -0.78%
China Shanghai Comp. 2734 -25 -0.91%
10yr T-notes (CBT)(U8) 120.050 -0.050 -0.13%
U.S. Dollar Index 94.377 -0.154 -0.16%
Euro FX (EUR/USD) 1.1698 0.0041 0.35%
Dollar-yen (USD/JPY) 110.64 0.15 0.14%
Sterling (GBP/USD) 1.3260 0.0030 0.23%
WTI Crude Oil (Q8) 74.55 0.41 0.55%
Brent Crude Oil (U8) 78.33 0.09 0.12%
Gasoline (Nymex) (Q8) 2.1320 0.0144 0.68%
Gold (Comex) (Q8) 1253.3 -0.2 -0.02%
Silver (Comex) (U8) 16.010 -0.033 -0.21%
Copper (Comex) (U8) 2.864 -0.054 -1.83%