Jun E-mini stock futures are down -2.00 points (-0.10%) and European stocks are down -0.16% on negative carryover from yesterday’s sell-off on Fed rate hike concerns. Stocks were pressured yesterday after Atlanta Fed President Lockhart and San Francisco Fed President Williams said that two rate hikes may be warranted this year, which puts the June FOMC meeting back into focus as a possible time for a Fed rate hike. Weakness in mining stocks is another drag on the overall market as the price of copper tumbled -1.60% to a 3-month low. China’s Shanghai Composite closed down -1.27% and Japan’s Nikkei Stock Index closed down -0.05% as better-than-expected economic data on China Apr new home prices and Japan Q1 GDP reduces the need for additional central bank stimulus measures. The dollar index is up +0.30% at a 3-week high on carryover strength from yesterday’s hawkish Fed commentary. Jun T-notes are down -6.5 ticks at a 2-week low on Fed rate hike concerns.
Japan Q1 GDP grew +1.7% (q/q annualized), much stronger than expectations of +0.3% (q/q annualized). The Q1 GDP deflator rose +0.9% y/y, weaker than expectations of +1.0% y/y and the slowest pace of increase in 2 years.
Japan Q1 GDP private consumption rose +0.5% q/q, stronger than expectations of +0.2% q/q. Q1 GDP business spending fell -1.4% q/q, weaker than expectations of -0.8% q/q.
UK Apr jobless claims unexpectedly fell -2,400, better than expectations of +5,000. The claimant count rate remained unch at 2.1%, as expected.
UK Mar average weekly earnings climbed +2.0% 3-month average y/y, higher than expectations of +1.7% 3-month average y/y. Mar weekly earnings ex-bonus rose +2.1% 3-month average y/y, weaker than expectations of +2.3% 3-month average y/y.
The UK ILO unemployment rate remained unchanged at 5.1% in the three months through Mar, as expected and the lowest in 10-1/3 years.
China Apr new home prices rose in 65 cities out of 70 tracked by the government, up from 62 in Mar and the most in 2-1/3 years.
| Morning Markets | Last | Chg | %chg |
| E-mini S&P 500 (M6) | 2041.50 | -2.00 | -0.10% |
| Europe Euro Stoxx 50 | 2933.32 | -4.77 | -0.16% |
| Japan Nikkei Index | 16645 | -8 | -0.05% |
| China Shanghai Comp. | 2808 | -36 | -1.27% |
| 10yr T-notes (CBT)(M6) | 130.065 | -0.065 | -0.16% |
| U.S. Dollar Index | 94.832 | 0.284 | 0.30% |
| Euro FX (EUR/USD) | 1.1275 | -0.0038 | -0.34% |
| Dollar-yen (USD/JPY) | 109.40 | 0.26 | 0.24% |
| Sterling (GBP/USD) | 1.4498 | 0.0035 | 0.24% |
| WTI Crude Oil (M6) | 48.47 | 0.16 | 0.33% |
| Brent Crude Oil (N6) | 49.33 | 0.05 | 0.10% |
| Gasoline (Nymex) (M6) | 1.6344 | 0.0003 | 0.02% |
| Gold (Comex) (M6) | 1274.3 | -2.6 | -0.20% |
| Silver (Comex) (N6) | 17.065 | -0.185 | -1.07% |
| Copper (Comex) (N6) | 2.056 | -0.034 | -1.60% |