OVERNIGHT MARKETS AND NEWS
September E-mini S&Ps (ESU15 +0.41%) are up +0.29% on increased M&A activity led by a 17% jump in Precision Castparts in pre-market trading on reports that Berkshire Hathaway was in talks to buy the company. European stocks are up +0.55%, led by a +1.2% increase in ASML Holding NV, which boosted technology stocks. Gains were limited as miners and energy producers declined on Chinese economic concerns after China Jul exports and imports fell more than expected. Asian stocks closed mostly higher: Japan +0.41, Hong Kong -0.13%, China +4.92%, Taiwan +0.29%, Australia +0.63%, South Korea -0.25%, India -0.48%. China's Shanghai Stock Composite jumped nearly 5% to a 2-week high on speculation that the government will boost stimulus measures to revive the economy after China Jul exports and imports fell more than expected and after China Jul producer prices fell by the most in 5-3/4 years. Chinese stocks also received a boost after the South China Morning Post reported that China's cabinet has approved plans to overhaul state-owned enterprises to allow mergers that may boost the economy.
The dollar index (DXY00 +0.15%) is up +0.32%. EUR/USD (^EURUSD) is down -0.34%. USD/JPY (^USDJPY) is up +0.39%.
Sep T-note prices (ZNU15 -0.11%) are down -6 ticks.
Eurozone Aug Sentix inventor confidence unexpectedly fell -0.1 to 18.4, weaker than expectations of +1.8 to 20.3.
China Jul CPI rose +1.6% y/y, more than expectations of +1.5% y/y and the most in 9 months. Jul PPI fell -5.4% y/y, weaker than expectations of -5.0%y/y and the fastest pace of decline in 5-3/4 years.
The China Jul trade balance unexpectedly shrank to a +$43.03 billion surplus from +$46.54 billion in Jun, when expectations were for a widening of the surplus to +$54.70 billion. Jul exports fell -8.3% y/y, more than expectations of -1.5% y/y and the biggest decline in 4 months. Jul imports fell -8.1% y/y, close to expectations of -8.0% y/y.
