Morning Call For Wednesday, June 7

OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM17 +0.04%) this morning are up +0.02% and European stocks are up +0.51%. Moves in equity prices were constrained ahead of Thursday's UK general election and the congressional testimony from former FBI director Comey. U.S. stock indexes followed European stocks higher after the ECB was said to cut its inflation outlook through 2019 and boost its GDP forecast. Stocks rose, EUR/USD (^EURUSD) fell and the 10-year German bund yield dropped to a 6-week low of 0.245% after Eurozone officials familiar with the matter said the ECB on Thursday will forecast CPI growth of 1.5% for 2017, 2018 and 2019, lower than a Mar forecast of 1.7% for 2017, 1.6% for 2018 and 1.7% for 2019. The ECB will also raise its GDP forecasts by +0.1 of a point from 2017 through 2019, according to the officials. Asian stocks settled mixed: Japan +0.02%, Hong Kong -0.09%, China +1.23%, Taiwan +0.04%, Australia -0.01%, Singapore -0.16%, South Korea -0.54%, India +0.26%.

The dollar index (DXY00 +0.32%) is up +0.35%. EUR/USD (^EURUSD) is down -0.60%. USD/JPY (^USDJPY) is up +0.03%.

Sep 10-year T-note prices (ZNU17 -0.06%) are down -1.5 ticks.

The Japan Apr leading index CI fell -1.2 to 104.5, stronger than expectations of -1.2 to 104.3. The Apr coincident index rose +3.3 to 117.7, stronger than expectations of +3.1 to 117.5 and the highest in 9-1/2 years.

German Apr factory orders fell -2.1% m/m, weaker than expectations of -0.3% m/m.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -3.4% with purchase sub-index -1.4% and refi sub-index -5.6%), (2) Apr consumer credit (expected +$15.0 billion, Mar +$16.431 billion), (3) EIA Weekly Petroleum Status Report.

Notable Russell 2000 earnings reports today include: Brown-Forman (consensus $0.40).

U.S. IPO's scheduled to price today: none.

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Disclosure: None.

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