Sep E-mini stock futures this morning are up +10.25 points (+0.37%) at a 2-week high and European stocks are up +0.32% at a 3-week high. A -0.16% decline in the dollar index to a 3-week low has given commodities a lift and fueled rallies in metals producers and mining stocks. European stocks found support in stronger-than-expected German May trade data along with an unexpected increase in Eurozone Jul Sentix investor confidence. Asian stocks settled higher as China’s Shanghai Composite closed up sharply by +2.47% and Japan’s Nikkei Stock Index closed up +1.21%. Chinese stocks moved higher as the yuan strengthened against the dollar after China’s Finance Ministry said that China would continue to deepen reform, open up its markets and create a “favorable business environment for companies from all over the world operating in China.” A rally in electronics and telecommunications stocks led Japan’s Nikkei Stock Index higher. EUR/USD is up +0.26% at a 3-week high after ECB Executive Board member Coeure said there’s currently “no reason to change policy expectations” due to trade tensions as “the backdrop is for very strong, resilient growth in the Eurozone.” USD/JPY is down -0.03%. Sep 10-year T-notes are down -5 ticks.
The German May trade balance narrowed to a surplus of +19.7 billion euros, smaller than expectations of +20.2 billion euros. May exports rose +1.8% m/m, stronger than expectations of +0.7% m/m. May imports unexpectedly rose +0.7% m/m, stronger than expectations of -0.5% m/m.
The Eurozone Jul Sentix investor confidence unexpectedly rose +2.8 to 12.1, stronger than expectations of -0.3 to 9.0.
ECB Executive Board member Coeure said the impact on business confidence due to trade tension risks has so far been “limited” and there’s currently “no reason to change policy expectations” as “the backdrop is for very strong, resilient growth in the Eurozone.”
The Japan Jun eco watchers survey outlook rose +0.8 to 50.0, weaker than expectations of +0.9 to 50.1. The Jun eco watchers survey current rose +1.0 to 48.1, right on expectations.
The Bank of France Jun business industry sentiment indicator rose +1 to 101, stronger than expectations of no change at 100.
Morning Markets Last Chg %chg
E-mini S&P 500 (U8) 2773.25 10.25 0.37%
Europe Euro Stoxx 50 3459.41 10.92 0.32%
Japan Nikkei Index 22052 264 1.21%
China Shanghai Comp. 2815 68 2.47%
10yr T-notes (CBT)(U8) 120.060 -0.050 -0.13%
U.S. Dollar Index 93.813 -0.150 -0.16%
Euro FX (EUR/USD) 1.1777 0.0031 0.26%
Dollar-yen (USD/JPY) 110.44 -0.03 -0.03%
Sterling (GBP/USD) 1.3340 0.0057 0.43%
WTI Crude Oil (Q8) 73.69 -0.11 -0.15%
Brent Crude Oil (U8) 77.88 0.77 1.00%
Gasoline (Nymex) (Q8) 2.1336 0.0251 1.19%
Gold (Comex) (Q8) 1266.1 10.3 0.82%
Silver (Comex) (U8) 16.250 0.181 1.13%
Copper (Comex) (U8) 2.853 0.029 1.01%