FINANCIALS, METALS AND ENERGY.
Sep E-mini stock futures this morning are up +24.00 points (+0.85%) and European stocks are up +0.64% after China took steps to limit weakness in the yuan. The PBOC set the daily currency fixing today stronger than market expectations, which strengthened the yuan after it fell to a new 11-1/4 year low against the dollar. The PBOC also said today it will sell 30 billion yuan ($4.2 billion) of bills on Aug 14, which will drain liquidity and make it more costly to short the yuan. Sep E-mini S&Ps had tumbled to a 2-month low Monday evening after the U.S. Treasury Department labeled China a currency manipulator. Global stocks markets went into a tailspin Monday after China allowed the yuan to fall to an 11-1/4 year low against the dollar. European stocks also found support today on strength in the German economy, Europe’s biggest, after German Jun factory orders rose +2.5% m/m, the biggest increase in 1-3/4 years. Despite the stronger-than-expected German Jun factory orders and rally in stocks, the 10-year German bund yield fell to a new record low of -0.539%. Asian markets settled lower as China’s Shanghai Composite closed down -1.56% at a 5-1/2 month low and Japan’s Nikkei Stock Index closed down -0.65% at a 6-3/4 month low. Asian markets sold-off as the U.S./China trade war deepened, although prices came off of their worst levels after the PBOC took steps to strengthen the yuan. The dollar index is unch. EUR/USD is down -0.03%. USD/JPY is up +0.37%. Sep T-notes are down -3.5 ticks.
German Jun factory orders rose +2.5% m/m, stronger than expectations of +0.5% m/m and the biggest increase in 1-3/4 years.
UK Jul BRC retail sales like-for-like rose +0.1% y/y, weaker than expectations of +0.5% y/y.
the Japan Jun leading index CI fell -1.6 to a 9-1/4 year low of 93.3, weaker than expectations of -1.4 to 93.5.
Japan Jun household spending rose +2.7% y/y, stronger than expectations of +1.1% y/y.
Japan Jun labor cash earnings unexpectedly rose +0.4% y/y, stronger than expectations of -0.6% y/y and the biggest increase in 6 months. Jun real cash earnings fell -0.5% y/y, stronger than expectations of -1.5% y/y.
|E-mini S&P 500 (U9)||2854.00||24.00||0.85%|
|Europe Euro Stoxx 50||3332.080||21.150||0.64%|
|Japan Nikkei Index||20585.000||-135.000||-0.65%|
|China Shanghai Comp.||2778.0000||-44.0000||-1.56%|
|10yr T-notes (CBT)(U9)||129.24||-0.04||-0.08%|
|U.S. Dollar Index||97.5230||0.0010||0.00%|
|Euro FX (EUR/USD)||1.12||0.00||-0.03%|
|WTI Crude Oil (U9)||54.9||0.16||0.29%|
|Brent Crude Oil (V9)||59.820||0.010||0.02%|
|Gasoline (Nymex) (U9)||1.717||-0.002||-0.09%|
|Nat Gas (Nymex) (U19)||2.114||0.044||2.13%|
|Gold (Comex) (Z9)||1476.3||-0.20||-0.01%|
|Silver (Comex) (U9)||16.385||-0.008||-0.05%|
|Copper (Comex) (U9)||2.557||0.013||0.49%|