OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 +0.08%) this morning are up +0.08% as U.S. House and Senate lawmakers begin work on a compromise to tax-overhaul legislation. European stocks are down -0.36% as a slump in copper prices fuels a decline in mining stocks and commodity producers. Mar COMEX copper (HGH18 -2.04%) is down -2.10% at a 2-month low on concern a slowdown in China’s economy will weaken its demand for industrial metals. European stocks also fell back after Eurozone Oct retail sales fell a more than expected -1.1% m/m, the largest monthly decline in 3-3/4 years. Asian stocks settled mostly lower: Japan -0.37%, Hong Kong -1.01%, China -0.18%, Taiwan -0.79%, Australia -0.23%, Singapore -0.01%, South Korea +0.26%, India -0.20%. Losses in technology stocks led Asian markets lower with China’s Shanghai Composite falling to a 3-1/4 month low.
The dollar index (DXY00 -0.06%) is down -0.08%. EUR/USD (^EURUSD) is down -0.01%. USD/JPY (^USDJPY) is up +0.07%.
Mar 10-year T-note prices (ZNH18 unch) are unchanged.
The German Nov Markit services PMI was revised downward to 54.3 from the originally reported 54.9.
Eurozone Oct retail sales fell -1.1% m/m, weaker than expectations of -0.7% m/m and the biggest decline in 3-3/4 years.
The UK Nov Markit/CIPS services PMI fell -1.8 to 53.8, weaker than expectations of -0.6 to 55.0.
UK Nov new car registrations fell -11.2% to 163,541 and year-to-date are down -5.0% at 2,388,144.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Oct trade deficit (expected -$47.4 billion, Sep -$43.5 billion), (2) revised-Nov Markit services US PMI (expected +0.6 to 55.3, prelim-Nov -0.6 to 54.7), (3) Nov ISM non-manufacturing (expected -1.1 to 59.0, Oct +0.3 to 60.1).
Notable Russell 1000 earnings reports today include: Toll Brothers (consensus $1.19), AutoZone (9.81), HD Supply (0.75), Veeva Systems (0.22).
