Morning Call For Thursday, August 30

Overnight Markets And News

Sep E-mini S&Ps (ESU18 -0.17%) this morning are down -0.17% and European stocks are down -0.48%. Trade war concerns weighed on U.S. equity markets after President Trump accused China of undermining U.S. efforts to get North Korea to give up its nuclear weapons, which may further exacerbate trade tensions with China. The U.S. has imposed $50 billion of tariffs on Chinese goods so far, with another $200 billion of additional tariffs ready to be imposed on Chinese imports next month. China has responded with equal tariffs and pledged further measures. European stocks fell back on a slump in confidence after the Eurozone Aug economic confidence fell more than expected to a 1-year low. On the positive side, energy stocks are higher with Oct WTI crude oil (CLV18 +0.55%) up +0.60%^ at a 3-week high. Also, Politico reported that the EU is willing to scrap tariffs on all industrial products, including automobiles, in its trade talks with the U.S. Asian stocks settled mostly lower: Japan +0.09%, Hong Kong -0.89%, China -1.14%, Taiwan -0.05%, Australia -0.01%, Singapore -0.56%, South Korea unch, India -0.08%. Chinese stocks retreated on ramped up U.S. trade tensions. China’s Ministry of Commerce urged the U.S. to back away from imposing new tariffs on $200 billion of Chinese goods, which the U.S. said may happen on Sep 6. Japan’s Nikkei Stock Index climbed to a 3-1/4 month high on the heels of a rally in the S&P 500 to new record high Wednesday.

The dollar index (DXY00 +0.03%) is down -0.03%. EUR/USD (^EURUSD -0.15%) is down -0.10%. USD/JPY (^USDJPY-0.18%) is down -0.10%.

Sep 10-year T-note prices (ZNU18 +0-010) are little changed, up +0.5 of a tick.

Eurozone Aug economic confidence fell -0.5 to a 1-year low of 111.6, weaker than expectations of -0.2 to 111.9. The Aug business climate indicator fell -0.08 to a 1-year low of 1.22, weaker than expectations of -0.03 to 1.26.

The German Aug unemployment change fell -8,000 to 2.33 million, right on expectations. The Aug unemployment rate remained unch at a record low of 5.2%, also right on expectations.