OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 +0.33%) this morning are up +0.23% and European stocks are up +0.39%. Better-than-expected Q3 earnings results from Lowe’s pushed the stock up 3% in pre-market trading and helped lift the overall market. European stocks rose and the German 10-year bund yield fell to a 1-1/2 week low of 0.337% after Eurozone officials familiar with the matter said the ECB will take small, gradual steps next year as it moves to end its bond purchases next year. Asian stocks settled higher: Japan +0.70%, Hong Kong +1.91%, China +0.53%, Taiwan +1.08%, Australia +0.30%, Singapore +1.09%, South Korea +0.18%, India +0.36%. A rally Chinese financial stocks lifted the overall market on optimism that deleveraging efforts by the government will not be as strict as expected. Japanese stocks gained on optimism in the U.S. economic outlook after U.S. Oct leading indicators rose more than expected, which shows economic strength and should benefit Japanese exporters.
The dollar index (DXY00 +0.01%) is up +0.03%. EUR/USD (^EURUSD) is down -0.07%. USD/JPY (^USDJPY) is down -0.05%.
Dec 10-year T-note prices (ZNZ17 -0.01%) are up +0.5 of a tick.
According to Eurozone officials familiar with the matter, the ECB is likely to make small multiple adjustments in its guidance on monetary policy next year rather than any major change in language as it ends QE.
UK Oct public sector net borrowing rose +7.5 billion pounds, stronger than expectations of +6.5 billion pounds and the biggest increase in 6 months.
The UK Nov CBI trends total orders rose +19 to a 29-year high of 17, stronger than expectations of +5 to 3.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Oct Chicago Fed national activity index (expected +0.03 to 0.20, Sep +0.54 to +0.17), (2) Oct existing home sales (expected +0.2% to 5.40 million, Sep +0.7% to 5.39 million), (3) Treasury auctions $13 billion of 2-year floating-rate notes, (4) Fed Chair Janet Yellen speaks at New York University’s Stern Business School.
