Good Euro News Seeps Into Domestic Markets

An overnight report showing that the Eurozone’s Manufacturing sector has returned to expansion for the first time in a year-and-a-half has pushed domestic equity futures higher while Treasury prices slip. Markit’s Manufacturing Purchasing Managers Index for the Euro-area rose in July to 51.8 from 47.4 the month prior and that has injected some positive vibes into investors’ Monday morning outlooks. A little later this morning, the Institute of Supply Management will be releasing a similar report for America’s Manufacturing sector, and some slight improvement is expected to be seen. Auto sales for July will also be reported by Wards and some slight growth over June’s tally is anticipated.

While markets await today’s opening, equity futures point to triple-digit green arrows as a modest sell-off in Treasuries has pushed the Ten-Year’s yield a couple of basis points higher to around 0.56%. Crude oil from West Texas is little changed at just over $40 while gold takes a breather at around $1,971. Investors will also be tuned in to ongoing Congressional negotiations over the next round of stimulus/relief as the legions of unemployed await news on what changes might affect their benefits. China and the U.S. continue to wrangle over trade issues among other things.