FINANCIALS, METALS AND ENERGY.
Sep E-mini stock futures this morning are up +5.25 points (+0.18%) and European stocks are up +1.04% as the yuan strengthened after the PBOC set its daily currency fixing stronger than expected. The yuan rose from Wednesday’s 11-1/4 year low after the PBOC set its daily reference rate today at 7.0039 yuan/USD, stronger than market expectations of 7.0156 yuan/USD. The yuan is currently up +0.22% at 7.0450 yuan/USD, mildly above Wednesday’s 11-1/4 year low of 7.0676 yuan/USD. Global equity markets also found support on strength in China Jul exports that unexpectedly rose by the most in 4 months, a sign of economic strength. Energy producing stocks are higher today with Sep WTI crude oil up sharply by +1.92% after Saudi Arabia was said to contact other oil producing countries to discuss options to stem the slide in crude prices, which fell to a 6-3/4 month low on Wednesday. Asian stocks settled higher as China’s Shanghai Composite closed up +0.93% and Japan’s Nikkei Stock Index closed up +0.37%. The dollar index is up +0.03%. EUR/USD is up +0.03%. USD/JPY is down -0.32%. Sep 10-year T-notes are down -10 ticks.
The China Jul trade balance was in surplus by +$45.06 billion, wider than expectations of +$42.65 billion. Jul exports unexpectedly rose +3.3% y/y, stronger than expectations of -1.0% y/y and the most in 4 months. Jul imports fell -5.6% y/y, stronger than expectations of -9.0% y/y.
Japan Jul eco watchers survey outlook fell -1.5 to a 3-year low of 44.3, weaker than expectations of -0.4 to 45.4. The Jul eco watchers survey current fell -2.8 to 41.2, weaker than expectations of -0.4 to 43.6.