OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ16 +0.55%) are up +0.48% and European stocks are up +1.05% on speculation the U.S. economy is strong enough to handle a slow pace of Fed interest rate increases. The outlook for a slow pace of Fed tightening has weakened the dollar and boosted commodity prices, with Dec COMEX gold (GCZ16 +0.48%) up +0.54% at a 1-week high. The strength in commodities has fueled gains in energy and raw-material producing stocks. Global stocks also received a lift after Chinese stocks rallied to a 5-week high. Asian stocks settled higher: Japan +0.38%, Hong Kong +1.55%, China +1.40%, Taiwan +0.51%, Australia +0.41%, Singapore +0.48%, South Korea +0.70%, India +1.89%. China’s Shanghai Composite rallied to a 5-week high as signs of strong credit growth reduced economic concerns after China Sep aggregate financing, the broadest measure of credit, climbed by the most in 6 months.
The dollar index (DXY00 -0.15%) is down -0.22%. EUR/USD (^EURUSD) is up +0.05%. USD/JPY (^USDJPY) is unchanged.
Dec 10-year T-note prices (ZNZ16 +0.01%) are up +2 ticks.
China Sep new yuan loans rose 1.22 trillion yuan, stronger than expectations of 1.00 trillion yuan. Sep aggregate financing rose 1.72 trillion yuan, stronger than expectations of 1.39 trillion yuan and the most in 6 months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Sep CPI (expected +0.3% m/m and +1.5% y/y, Aug +0.2% m/m and +1.1% y/y) and Sep CPI ex food & energy (expected +0.2% m/m and +2.3% y/y, Aug +0.3% m/m and +2.3% y/y), (2) Oct NAHB housing market index (expected -2 to 63, Sep +6 to 65).
Notable S&P 500 earnings reports today include: Goldman Sachs (consensus $3.88), Intel ($0.73), BlackRock (4.98), Johnson & Johnson (1.65), Harley-Davidson (0.64), Yahoo (0.14), Kansas City Southern (1.18), UnitedHealth Group (2.08).
U.S. IPO’s scheduled to price today: none.
Equity conferences during the remainder of this week include: 4th Annual Private Wealth Latin America and the Caribbean Forum on Tue.
