Sep E-mini stock futures this morning are little changed, up +1.00 point (+0.03%), and European stocks are up +0.13%. Gains in stocks were limited on escalation of China/U.S. trade tensions after the U.S. said it will impose a 25% tariff on an additional $16 billion of Chinese goods starting Aug 23. Heightened Brexit risks are negative for European stocks and continue to hammer the British Pound as GBP/USD slid -0.56% to a new 11-month low on concern the U.K. won’t agree to exit terms with the EU. Asian stocks settled mostly lower as China’s Shanghai Composite closed down -1.27% and Japan’s Nikkei Stock Index closed down -0.08%. Ratcheted up trade tensions between China and the U.S. undercut Chinese equities despite Chinese trade data that showed stronger-than-expected China Jul exports and imports. Japanese stocks gave up an early rally to a 2-week high and closed lower after USD/JPY slid -0.31% to a 1-week low, which reduces Japanese exporters’ earnings prospects. The dollar index is up +0.08%. EUR/USD is down -0.03%. Sep 10-year T-notes are up +1 tick.
Japan Jul bankruptcies fell -1.68% y/y, the fourth consecutive month that bankruptcies have declined.
The Japan Jul eco watchers survey outlook fell -1.0 to a 16-month low of 49.0, weaker than expectations of -0.1 to 49.9. The Jul eco watchers survey current fell -1.5 to a 22-month low of 46.6, weaker than expectations of -0.1 to 48.0.
The China Jul trade balance was in surplus by +$28.05 billion, narrower than expectations of +$38.92 billion, Jul exports rise +12.2% y/y, stronger than expectations of +10.0% y/y and the biggest increase in 5-months. Jul imports jumped +27.3% y/y, stronger than expectations of +16.5% y/y and the most in 6-months.
The Jul Bank of France business industry sentiment indicator was unch at 101, right on expectations.
Morning Markets Last Chg %chg
E-mini S&P 500 (U8) 2860.75 1.00 0.03%
Europe Euro Stoxx 50 3509.02 4.65 0.13%
Japan Nikkei Index 22644 -18 -0.08%
China Shanghai Comp. 2744 -35 -1.27%
10yr T-notes (CBT)(U8) 119.160 0.010 0.03%
U.S. Dollar Index 95.263 0.077 0.08%
Euro FX (EUR/USD) 1.1596 -0.0003 -0.03%
Dollar-yen (USD/JPY) 111.03 -0.35 -0.31%
Sterling (GBP/USD) 1.2866 -0.0073 -0.56%
WTI Crude Oil (U8) 68.73 -0.44 -0.64%
Brent Crude Oil (V8) 74.33 -0.32 -0.43%
Gasoline (Nymex) (U8) 2.0832 -0.0208 -0.99%
Gold (Comex) (Z8) 1217.8 -0.5 -0.04%
Silver (Comex) (U8) 15.345 -0.028 -0.18%
Copper (Comex) (U8) 2.741 -0.011 -0.40%