OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 +0.07%) this morning are up +0.11% and European stocks are up +0.27% ahead of U.S. data on Oct personal spending and Oct durable goods orders. EUR/USD is weaker and the yields on European government bonds fell to record lows on the prospects of further easing by the ECB. Asian stocks closed mostly higher: Japan -0.14%, Hong Kong +1.12%, China +1.39%, Taiwan +0.07%, Australia +1.15%, Singapore +0.14%, South Korea +0.11%, India +0.17%. China’s Shanghai Stock Index posted a new 3-year high on prospects for private investment and speculation of additional stimulus measures after the PBOC unexpectedly cut interest rates last Friday. Commodity prices are mixed. Jan crude oil (CLF15 -0.05%) is down -0.03% at a 1-week low on speculation OPEC will refrain from production cuts when it meets tomorrow in Vienna after Saudi Arabian Oil Minister Ali Al-Naimi said the “market will stabilize itself.” Jan gasoline (RBF15 +0.25%) is up +0.22%. Dec gold (GCZ14 -0.05%) is unch. Dec copper (HGZ14 +0.22%) is up +0.25% as it recovers from a 4-1/3 year low. Agriculture prices are higher. The dollar index (DXY00 -0.03%) is up +0.06%. EUR/USD (^EURUSD) is down -0.14%. USD/JPY (^USDJPY) is down -0.18%. Dec T-note prices (ZNZ14 +0.09%) are up +1 tick at a 1-month high on carry-over support from a rally in German bunds to a 5-week high.
ECB Vice President Constancio said the ECB may consider buying sovereign debt next quarter if current stimulus proves insufficient, which reflects a growing consensus of ECB members who feel the need to wait to see the impact of existing measures before expanding stimulus.
The German Oct import price index fell -0.3% m/m and -1.2% y/y, a slower pace of decline than expectations of -0.5% m/m and -1.5% y/y.
UK Nov CBI reported sales fell -4 to 27, a bigger decline than expectations of -3 to 28
