MORNING COFFEE

China To Let Yuan Rise. Ahead of this week's G-20 summit, China said it would allow the Yuan to rise following an improvement in the economy. China didn't set a timeline for the change, and ruled out a one-off revaluation, saying there is no basis for “large-scale appreciation." Asian stocks climbed the most in seven months on speculation that a more flexible yuan will help China’s growth, while the yuan rose the most in five years.

Gold Higher On Saudi Arabia News. Saudi Arabia's central bank announced that it is holding nearly twice as much gold as previously thought.  The news sent gold prices to a fresh high of almost $1,265 per ounce. Saudi Arabia's is holding to 322.9 million tons compared to the 143 million tons reported in March.

Durable Orders Show Strong Increase. The Federal Reserve reported that manufacturing production increased by +0.8% in May, driven by a +1.7% rise in durable goods production.  Wall Street had estimated that durable orders would show a -1.3% decrease. The gains in durable goods production were widespread, with 9 of the 11 industries increasing last month.

·         Futures: Dow +1.3%. S&P +1.5%. Nasdaq +1.5%. Crude +1.75% to $78.53. Gold +0.1% to $1259.50.

·         Asia: Japan +2.4% to 10238. Hong Kong +3.1% to 20912. China +2.9% to 2586. India +1.7% to 17877.

·         Europe: London +1.1%. Paris +1.6%. Frankfurt +1.5%.