OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 +0.47%) this morning are up +0.55% at a 1-week high and European stocks are up sharply by +1.18% at a 3-week high after the impact of Hurricane Irma is smaller than initially feared and as North Korean tensions eased after it did not conduct a missile test over the weekend. Strength in energy stocks is also giving stock indexes a boost with Oct WTI crude oil (CLV17 +0.57%) up +0.74% after Saudi Arabian Energy Minister Khalid Al-Falih said it is open to the extension of OPEC crude production cuts “beyond the first quarter, if needed.” Asian stocks settled mostly higher: Japan +1.41%, Hong Kong +1.04%, China +0.33%, Taiwan -0.36%, Australia +0.71%, Singapore unch, South Korea +0.78%, India +0.61%. An easing of North Korean risks helped boost Asian markets as did strength in suppliers to Apple on anticipation the company will unveil its iPhone 8 and iPhone 8 Plus models at an event on Tuesday.
The dollar index (DXY00 +0.23%) is up +0.14$. EUR/USD (^EURUSD) is down -0.21% after ECB Executive Board member Coeure warned that strength in EUR/USD could further depress inflation. USD/JPY (^USDJPY) is up +0.63%.
Dec 10-year T-note prices (ZNZ17 -0.26%) are down -9 ticks.
ECB Executive Board member Coeure warned that strength in EUR/USD could depress inflation unless it’s offset by a strengthening economy when he said, “Exogenous shocks to the exchange rate, if persistent, can lead to an unwarranted tightening of financial conditions with undesirable consequences for the inflation outlook.”
China Aug CPI rose +1.8% y/y, stronger than expectations of +1.6% y/y and the fastest pace of increase in 7 months. Aug PPI rose +6.3% y/y, stronger than expectations of +5.7% y/y.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Treasury auctions $24 billion of 3-year T-notes, (2) USDA weekly grain export inspections, (3) USDA crop conditions and progress report.
Notable Russell 1000 earnings reports today include: none.
U.S. IPO’s scheduled to price today: none.
