Overnight Markets And News
Jun E-mini S&Ps (ESM18 +0.23%) this morning are up +0.23% at a new 1-1/2 month high on expectations for the Fed to maintain their slow pace to interest rate hikes after Thursday's CPI data came in below expectations. Energy stocks are stronger with Jun WTI crude oil (CLM18 +0.04%) up +0.14% as Middle East tensions simmer and as the market assesses how the renewed sanctions on Iran will affect global crude supplies. Mining stocks and metal producers are higher as well with Jun COMEX gold (GCM18 +0.19%) up +0.19% at a 1-1/2 week high and Jul COMEX copper (HGN18 +0.02%) up +0.23% at a 2-week high. The 10-year T-note yield also held below 3%, another positive for equity prices. European stocks are down -0.27%, weighed down by losses in healthcare stocks. Asian stocks settled mixed: Japan +1.16%, Hong Kong +1.02%, China -0.35%, Taiwan +0.92%, Australia -0.04%, Singapore +0.92%, South Korea +0.38%, India +0.82%. Japan's Nikkei stock Index rallied to a 3-month high after weak U.S. inflation data on Thursday eased concern the Fed would have to speed up the pace of their rate hikes. Reduced geopolitical concerns also aided Asian equity markets with U.S. President Trump and North Korean leader Kim Jong Un set to meet in Singapore on June 12.
The dollar index (DXY00 -0.11%) is down -0.19%. EUR/USD (^EURUSD +0.16%) is up +0.16%. USD/JPY (^USDJPY-0.09%) is down -0.10%.
Jun 10-year T-note prices (ZNM18 +0-015) are up +2 ticks.
China Apr new yuan loans were 1.18 trillion yuan, stronger than expectations of 1.10 trillion yuan. Apr aggregate financing rose +1.56 trillion yuan, stronger than expectations of 1.35 trillion yuan.
U.S. Stock Preview
Key U.S. news today includes: (1) Apr import price index (expected +0.5% m/m and +3.9% y/y, Mar unch m/m and +3.6% y/y), (2) St. Louis Fed President James Bullard (non-voter) speaks on the U.S. economy and monetary policy at a Springfield Area Chamber of Commerce breakfast in Springfield, MO and (3) University of Michigan U.S. May consumer sentiment (expected -0.5 to 98.3, Apr -2.6 to 98.8).
