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.
|E-mini S&P 500 (U9)||2883.00||7.00||0.24%|
|Europe Euro Stoxx 50||3334.080||42.420||1.29%|
|Japan Nikkei Index||20517.000||-69.000||-0.33%|
|China Shanghai Comp.||2769.0000||-9.0000||-0.32%|
|10yr T-notes (CBT)(U9)||130.13||0.20||0.48%|
|U.S. Dollar Index||97.7120||0.0820||0.08%|
|Euro FX (EUR/USD)||1.12||0.00||-0.08%|
|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)||2.128||0.017||0.81%|
|Gold (Comex) (Z9)||1501.9||17.70||1.19%|
|Silver (Comex) (U9)||16.835||0.39||2.37%|
|Copper (Comex) (U9)||2.56||0.002||0.08%|