Morning Call For Friday, Sept. 7

Overnight Markets And News

Sep E-mini S&Ps (ESU18 -0.13%) this morning are down -0.13% as markets await the next move in the China/U.S. trade war. Also, the markets await this morning’s U.S. Aug non-farm payrolls, which is seen as strong enough to cement the case for a Fed rate hike later this month. European stocks are down -0.36% at a 5-1/4 month low after data from Germany, Europe’s largest economy, shows signs of a slowdown after German Jul industrial production unexpected declined and German Jul exports unexpectedly fell by the most in 5-months. Also weighing on the European market is a slide in bank stocks, led by a -3.5% drop in ING Groep NV, after the newspaper Het Financieele Dagblad reported the bank signaled to its managers its license to operate could be threatened because of information technology and working system problems. Asian stocks settled mostly lower: Japan -0.80%, Hong Kong -0.01%, China +0.40%, Taiwan -0.71%, Australia -0.27%, Singapore -0.42%, South Korea -0.48%, India +0.38%. Japan’s Nikkei Stock Index fell to a 2-week low on trade concerns along with weakness in exporters after USD/JPY fell to a 2-week low. Chinese stocks ended slightly higher after some top American technology companies and retailers urged the Trump administration not to impose additional tariffs on Chinese goods. A public-consultation period ended Thursday night in the U.S., and the markets look to see if President Trump proceeds with imposing tariffs on another $200 billion of Chinese imports.

The dollar index (DXY00 +0.02%) is down -0.10%. EUR/USD (^EURUSD -0.13%) is down -0.03%. USD/JPY (^USDJPY+0.11%) is up +0.07%.

Dec 10-year T-note prices (ZNZ18 -0-005) are down -1.5 ticks.

German Jul industrial production unexpectedly fell -1.1% m/m, weaker than expectations of +0.2% m/m.

The German Jul trade balance shrank to a surplus of +16.5 billion euros, narrower than expectations of +19.5 billion euros and the smallest surplus in 1-1/2 years. Jul exports unexpectedly fell -0.9% m/m, weaker than expectations of +0.3% m/m and the biggest decline in 5-months. Jul imports rose +2.8% m/m, stronger than expectations of +0.1% m/m and the largest increase in 2-3/4 years.

Japan Jul labor cash earnings rose +1.5% y/y, weaker than expectations of +2.4% y/y. Jul real cash earnings rose +0.4% y/y, weaker than expectations of +1.1% y/y.