Jim Van Meerten's  Instablog

BC - 1 hr 8 mins ago

Overnight Developments

• Sep E-mini S&Ps this morning are up by +0.40% and European stocks are up with the Euro Stoxx 50 up 0.52%. EUR/USD is up +0.29% and the dollar index weakened -0.25% before this morning's policy statement from the ECB. Commodity prices are mixed with crude oil up +0.29% and copper down -0.50%. Agricultural prices are lower on with Dec corn down -0.59% and Nov soybeans down -0.74%. Sep T-notes are up +5.5 ticks.
• Asian stocks today closed mixed: Japan +0.13%, Hong Kong -0.66%, China -1.01%, Australia +0.16%, South Korea -0.68%, India -0.19%.
• As expected, the BOE maintained its benchmark rate at 0.50% and held its asset purchase plan at 375 billion pounds.
• Spanish 10-year bond yields fell -9 bp to 6.56% after the government sold 3.13 billion euros of 10-year debt, which exceeded its target sale of 3 billion euros.
• Euro-Zone producer price inflation slowed after the Euro-Zone June PPI fell -0.5% m/m and rose +1.8% y/y, weaker than expectations of -0.4% m/m and +1.9% y/y with the +1.8% y/y gain the smallest annual increase in 2-1/4 years.
• U.K. July construction PMI climbed +2.7 to 50.9, stronger than expectations of +0.5 to 48.7.
• China's Securities Regulatory Commission cut transaction fees on yuan-denominated stocks traded in Shanghai and Shenzhen for a third time this year in an attempt to bolster investor sentiment amid sagging stock prices. Market Comments
  • Sep E-mini S&Ps this morning are . The U.S. stock market Wednesday traded higher into early afternoon and then moved lower after the FOMC announcement and finished with moderate losses on disappointment the Fed refrained from more stimulus: S&P 500 -0.29%, Dow Jones -0.25%, Nasdaq 100 -0.28%. An unexpected contraction in the July ISM manufacturing index for a second month and an unexpected decline in the July China PMI manufacturing index fueled global growth concerns and were negative for stocks along with disappointment that the Fed failed to signal additional stimulus measures in its post-FOMC statement.
  • Sep 10-year T-notes this morning are . Sep 10-year T-note prices on Wednesday traded lower until the early afternoon post-FOMC statement when they whipsawed up to unchanged and then sold-off into the close on disappointment the Fed failed to provide additional stimulus measures: TYU2 -16, FVU2 -7.5. Losses in T-note prices were limited on global growth concerns after July China and U.S. manufacturing activity rose less than expected.
  • The dollar index this morning is with EUR/USD % and USD/JPY %. The dollar index on Wednesday shook off early losses and closed higher after the Fed refrained from further steps to stimulate economic growth: Dollar index +0.423 (+0.51%), EUR/USD +0.00018 (+0.01%), USD/JPY -0.011 (-0.01%).
  • Sep WTI crude oil prices this morning are a barrel . Sep gasoline is cents per gallon. Crude oil and gasoline prices Wednesday closed higher after weekly U.S. crude inventories fell -6.52 million bbl to a 3-month low, more than expectations of -1.0 million bbl, and as weekly gasoline supplies unexpectedly contracted -2.17 million bbl, weaker than expectations of a +500,000 bbl build: CLU2 +0.59 (+0.67%), RBU2 +0.0599 (+2.16%). Limiting gains in energy prices were the weaker-than-expected July manufacturing data from China and the U.S., the world's two biggest crude consumers, which suggests uneven economic strength that may crimp energy demand.
  • For the complete subscription version of this daily report (plus a 13-page big-picture weekly report), along with the earliest possible delivery in the morning, please visit http://www.barchart.com/register/crbfms_usmc.php Today's U.S. Earnings Reports

    Earnings reports (ranked by market cap): KFT-Kraft Foods (Consensus $0.66), AIG-American International Group (0.60), DUK-Duke Energy (0.97), APA-Apache (2.54), DTV-DirecTV (1.14), GM-General Motors (0.75), PSA-Public Storage (0.95), TWC-Time Warner Cable (1.38), CBS-CBS Corp. (0.59), SE-Spectra Energy (0.36), K-Kellog (0.84), SRE-Sempra Energy (0.82), BDX-Becton Dickinson (1.53), CAH-Cardinal Health (0.72), XEL-Xcel Energy (0.36), CI-Cigna (1.42).

    Global Financial Calendar

    Thursday 8/2/12
    United States
    0730 ET	July Challenger job cuts, June -9.4% y/y.
    0830 ET	Weekly initial unemployment claims expected +17,000 to 370,000, previous -35,000 to 353,000. Weekly continuing claims expected -2,000 to 3.285 mln, previous -30,000 to 3.287 mln.
    0830 ET	USDA weekly exports.
    0945 ET	July ISM New York manufacturing index, June 49.7.
    1000 ET	June factory orders expected +0.5% m/m, May +0.7% m/m.
    n/a	July ICSC chain store sales, June +0.2% y/y.
    1030 ET	DOE natural gas storage.
    1100 ET	Kansas City Fed July manufacturing index, June 3.
    1630 ET	Weekly money supply report and Fed balance sheet.
    United Kingdom
    0430 ET	UK July construction PMI expected +0.5 to 48.7, June 48.2.
    0700 ET	BOE policy meeting outcome; base rate expected unchanged at 0.50%, asset purchase target expected unchanged at 375 bln pounds.
    Euro-Zone
    0500 ET	Eurozone June PPI expected -0.4% m/m and +1.9% y/y, May -0.5% m/m and +2.3% y/y.
    0745 ET	ECB policy meeting outcome; refinancing rate expected unchanged at 0.75%.
    CHI
    2100 ET	China July non-manufacturing PMI (China Federation of Logistics and Purchasing), June +1.5 to 56.7.
    2230 ET	China July HSBC services PMI, June -2.4 to 52.3.

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