Overnight Markets And News

Dec E-mini S&Ps (ESZ18 +0.09%) this morning are up +0.10% on strength in technology and energy stocks. Energy stocks rose as Nov WTI crude oil (CLX18 +0.94%) climbed +1.09% on supply concerns after U.S. Energy Secretary Perry said he government isn’t planning to tap emergency oil supplies when American sanctions on Iranian crude are implemented in November. European stocks are down -0.11% after Eurozone Sep economic confidence fell to a 15-month low and after the top German research institutes cut their German 2018 GDP forecast to 1.7% from 2.2%, the slowest pace of growth in 3-years. Also, weakness in Italian stocks and government bonds weighed on European assets after reports that Italy’s Five Star Movement and the League were pushing for extra spending that may delay Italy’s 2019 budget. Asian stocks settled mostly lower: Japan -0.99%, Hong Kong -0.36%, China -0.54%, Taiwan +0.55%, Australia -0.18%, Singapore -0.09%, South Korea +0.59%, India -0.60%. Asian stock markets fell back on ramped up China/U.S. trade tensions along with the prospects for another Fed rate hike before the end of the year.

The dollar index (DXY00 +0.37%) is up +0.30% at a 1-week high on positive carry-over from Wednesday after the post-FOMC statement boosted the prospects for a Dec interest rate increase. EUR/USD (^EURUSD -0.25%) is down -0.23% at a 1-week low on a slump in European Sep economic confidence along with Italian budget woes. USD/JPY (^USDJPY +0.09%)cis up +0.06%.

Dec 10-year T-note prices (ZNZ18 +0-030) are up +3 ticks at a 1-week high on positive carry-over from Wednesday’s post-FOMC statement where the Fed removed its policy setting as “accommodative,” which bolsters speculation the Fed may slow the pace of rate hikes as it nears a neutral policy rate.

Eurozone Sep economic sentiment fell -0.7 to a 15-month low of 110.9, weaker than expectations of -0.4 to 111.2. The Sep business climate indicator was unch at 1.21, stronger than expectations of -0.03 to 1.19.