Overnight Markets and News
Jun E-mini S&Ps this morning are down -0.23% ahead of the monthly U.S. payrolls report later this morning. Stocks are also under pressure as the China-U.S. trade talks ended after two days without key differenced being resolved. China's Xinhua News Agency reported major disagreements on some trade matters remain and both sides will continue communicating to work toward making more progress. They also said that both sides reached a consensus on some trade issues, without providing details. European stocks are up +0.13% on upbeat comments from ECB Vice President Constancio who said, “the ongoing robust recovery the Eurozone is experiencing is a source of optimism for the immediate future.” Gains were limited after the Apr Markit composite PMI was revised lower to a 15-month low of 55.1 and after Eurozone Mar retail sales rose less than expected. Asian stocks settled mostly lower: Japan closed for holiday, Hong Kong -1.28%, China -0.32%, Taiwan +0.14%, Australia -0.58%, Singapore -0.85%, South Korea -1.19%, India -0.53%.
The dollar index is up +0.12%. EUR/USD is down -0.17%. USD/JPY is down -0.185.
Jun 10-year T-note prices are up +3 ticks.
ECB Vice President Constancio said “the ongoing robust recovery the Eurozone is experiencing is a source of optimism for the immediate future. The Eurozone is much more resilient to possible external financial shocks.”
The Eurozone Apr Markit composite PMI was revised lower to a 15-month low of 55.1 from the originally reported 55.2.
Eurozone Mar retail sales rose +0.1% m/m and +0.8% y/y, weaker than consensus of +0.5% m/m and +1.9% y/y.
The China Apr Caixin services PMI rose +0.6 to 52.9, stronger than expectations of no change at 52.3.
U.S. Stock Preview
Key U.S. news today includes: (1) Apr non-farm payrolls (expected +193,000, Mar +103,000) and Apr unemployment rate (expected -0.1 to 4.0%, Mar unch at 4.1%), (2) Apr avg hourly earnings (expected +0.2% m/m and +2.7% y/y, Mar +0.3% m/m and +2.7% y/y), (3) New York Fed President William Dudley (voter) speaks in a press interview about the financial tumult of our times and the challenges ahead, (4) San Francisco Fed President John Williams (voter) in the luncheon speaker at a Hover Institute policy conference on “Currencies, Capital and central bank Balances,” (5) Fed Vice Chairman Randal Quarles speaks on liquidity regulation and the size of the Fed's balance sheet at a Hoover Institution monetary policy conference, (6) Dallas Fed President Robert Kaplan (non-voter) speaks at a conference on currencies and capital and central bank balances.
