OVERNIGHT MARKETS AND NEWS
Sep E-mini S&Ps (ESU16 -0.64%) are down -0.60% at a 2-month low and European stocks are down -1.94% at a 2-week low on concern the Fed is closer to raising interest rates. The yield on the German bund 10-year yield and the U.S. 10-year T-note yield both climbed to 2-1/2 month highs on speculation global central banks may be done expanding their stimulus measures. Rate hike concerns have also undercut commodity prices with crude oil (CLV16 -2.31%) down -1.79% and copper (HGZ16 -0.72%) down -0.81% at a 2-3/4 month low. That has pressured energy producing stocks and mining companies. Asian stocks settled lower: Japan -1.73%, Hong Kong -3.36%, China -1.85%, Taiwan -1.18%, Australia -2.24%, Singapore closed for holiday, South Korea -2.63%, India -1.54%. Losses in technology companies led Asian markets lower as Samsung Electronic tumbled 7% after regulators and airlines warned against the use of Samsung’s Note 7 smartphones due to risk of fire from its batteries.
The dollar index (DXY00 +0.03%) is up +0.05%. EUR/USD (^EURUSD) is down -0.10%. USD/JPY (^USDJPY) is down -0.62%.
Dec T-note prices (ZNZ16 -0.12%) are down -4.5 ticks at a 2-1/2 month low.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Atlanta Fed President Dennis Lockhart (non-voter) speaks about monetary policy and the economy to the National Association for Business Economics, (2) Treasury auctions $24 billion of 3-year T-notes, (3) Minneapolis Fed President Neel Kashkari (non-voter) speaks about too-big-to-fail and the U.S. economy at an event in St. Paul, MN, (4) Treasury auctions $23 billion of 10-year T-notes, (5) Fed Governor Lael Brainard discusses the outlook for the U.S. economy and monetary policy at the Chicago Council on Global Affairs, (6) USDA weekly grain export inspections, (7) USDA Sep WASDE crop production, and (8) USDA Weekly Crop Progress.
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