OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ16 +0.24%) are up +0.45% and European stocks are up +0.20% ahead of a batch of U.S. economic data today on retail sales, producer prices and regional manufacturing surveys that may give clues as to the health of the economy. The BOE, as expected, voted 9-0 to keep its benchmark rate unchanged at 0.25% and maintain its asset purchase target at 435 billion pounds following today’s policy meeting. A +1.26% rally in crude oil prices (CLV16 +0.39%) is giving energy producing stocks a boost and leading the overall market higher. Asian stocks settled mixed: Japan -1.26%, Hong Kong +0.63%, China, Taiwan and South Korea closed for holiday, Australia +0.23%, Singapore -0.14%, India +0.14%. Japan’s Nikkei Stock index fell to a 2-1/2 week low as bank stocks declined on concern the BOJ at next week’s policy meeting may try to pursue policies that push interest rates deeper in negative territory, which may further reduce banks’ earnings prospects.
The dollar index (DXY00 +0.03%) is up +0.04%. EUR/USD (^EURUSD) is down -0.10%. USD/JPY (^USDJPY) is down -0.01%.
Dec T-note prices (ZNZ16 +0.02%) are down -2 ticks.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +6,000 to 265,000, previous -4,000 to 259,000) and continuing claims (expected +6,000 to 2.150 million, previous -7,000 to 2.144 million), (2) Q2 current account balance (expected -$120.8 billion, Q1 -$124.67 billion), (3) Aug retail sales (expected -0.1% m/m and +0.2% ex autos, Jul unch and -0.3% ex autos), (4) Sep Philadelphia Fed business outlook survey (expected -1.0 to 1.0, Aug +4.9 to 2.0), (5) Sep Empire manufacturing index (expected +3.2 to -1.0, Aug -4.8 to -4.2), (6) Aug PPI final demand (expected +0.1% m/m and +0.1% y/y, Jul -0.4% m/m and -0.2% y/y) and Aug PPI ex food & energy (expected +0.1% m/m and +1.0% y/y, Jul -0.3% m/m and +0.7% y/y), (7) Aug industrial production (expected -0.2%, Jul +0.7%), (8) Jul business inventories (expected +0.1%, Jun +0.2%), and (9) USDA weekly Export Sales.
