MORNING NEWS

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.

Morning Markets LastChg%chg
E-mini S&P 500 (U9)2854.0024.000.85%
Europe Euro Stoxx 503332.08021.1500.64%
Japan Nikkei Index20585.000-135.000-0.65%
China Shanghai Comp.2778.0000-44.0000-1.56%
10yr T-notes (CBT)(U9)129.24-0.04-0.08%
U.S.  Dollar  Index97.52300.00100.00%
Euro FX (EUR/USD)1.120.00-0.03%
Dollar-yen (USD/JPY)106.340.390.37%
Sterling (GBP/USD)1.21790.00360.30%
WTI Crude Oil (U9)54.90.160.29%
Brent Crude Oil (V9)59.8200.0100.02%
Gasoline (Nymex) (U9)1.717-0.002-0.09%
Nat Gas (Nymex) (U19)2.1140.0442.13%
Gold (Comex) (Z9)1476.3-0.20-0.01%
Silver (Comex) (U9)16.385-0.008-0.05%
Copper (Comex) (U9)2.5570.0130.49%