MORNING NEWS

FINANCIALS, METALS AND ENERGY

Sep E-mini stock futures this morning are up +7.00 points (+0.24%) and European stocks are up +1.29% on dovish central banks.  New Zealand’s central bank (RBNZ) cut its benchmark rate by 50 bp to a record low 1.00%, double expectations for a 25 bp cut, and the Reserve Bank of India (RBI) cut its benchmark rate by 35 bp to 5.40%, a bigger reduction than expectations for a 25 bp cut.  Also, the central bank of Thailand unexpectedly cut its benchmark rate by 25 bp to 1.50%.  The world’s central banks are taking steps to bolster their economies as escalating U.S./China trade tensions threaten to derail the global economy.  Global government bond yields continue to fall as the 10-year German bund yield dropped to a new record low today of -0.598%, the 10-year UK Gilt yield dropped to a new record low of 0.431% and the 10-year T-note yield slid to a 2-3/4 year low of 1.643%.  The plunge in global bond yields has fueled demand for gold as a store of wealth with Dec COMEX gold up +1.19% to a new 6-1/4 year high.  Asian markets settled lower.  China’s Shanghai Composite closed down -0.32% and Japan’s Nikkei Stock Index closed down -0.33%.  The yuan weakened by 0.34% to 7.043 per dollar after the PBOC set its daily currency reference rate just above 7 yuan per dollar at 6.9996 per dollar, weaker than market expectations of 6.9977 per dollar.  The dollar index is up +0.08%.  EUR/USD is down -0.08% after German Jun industrial production fell -5.2% y/y, the largest annual decline in 9-1/2 years.  USD/JPY is down -0.28%.  Sep 10-year T-notes are up +20 ticks to a new contract and 2-3/4 year nearest-futures high.

German Jun industrial production fell -1.5% m/m and -5.2% y/y, weaker than expectations of -0.5% m/m and -3.1% y/y with the -5.2% y/y fall the largest annual decline in 9-1/2 years.

UK Jul Halifax house prices unexpectedly fell for a second month as they declined -0.2% m/m, weaker than expectations of +0.3% m/m.

Morning Markets LastChg%chg
E-mini S&P 500 (U9)2883.007.000.24%
Europe Euro Stoxx 503334.08042.4201.29%
Japan Nikkei Index20517.000-69.000-0.33%
China Shanghai Comp.2769.0000-9.0000-0.32%
10yr T-notes (CBT)(U9)130.130.200.48%
U.S.  Dollar  Index97.71200.08200.08%
Euro FX (EUR/USD)1.120.00-0.08%
Dollar-yen (USD/JPY)106.17-0.30-0.28%
Sterling (GBP/USD)1.2145-0.0026-0.21%
WTI Crude Oil (U9)53.3-0.31-0.58%
Brent Crude Oil (V9)58.580-0.360-0.61%
Gasoline (Nymex) (U9)1.681-0.006-0.37%
Nat Gas (Nymex) (U19)2.1280.0170.81%
Gold (Comex) (Z9)1501.917.701.19%
Silver (Comex) (U9)16.8350.392.37%
Copper (Comex) (U9)2.560.0020.08%