Overnight Markets And News
Dec E-mini S&Ps (ESZ18 -0.06%) this morning are down -0.09% in quiet trade with cash forex and Treasury trading closed in the U.S. today for the Veteran’s Day holiday. European stocks are down -0.44% and EUR/USD (^EURUSD-0.60%) fell -0.61% to a 16-month low on increased European political risks. GBP/USD is down -0.77% at a 1-week low as UK Prime Minister May is facing pressure to ditch her Brexit plan or face defeat in Parliament, while Italy’s budget impasse with the EU shows no signs of being resolved after Italy’s Deputy Prime Minsker Di Maio said respecting EU budget limits is suicidal and would bring on a recession. Losses were limited as energy stocks rose with Dec WTI crude oil (CLZ18 +0.60%) up +0.50% after Saudi Energy Minister Khalid Al-Falih said OPEC+ need to cut about 1 million bpd from Oct production levels on oversupply concerns. Asian stocks settled mostly higher: Japan +0.09%, Hong Kong +0.12%, China +1.22%, Taiwan +0.01%, Australia +0.33%, Singapore -0.32%, South Korea +0.09%, India -0.98%. Chinese stocks moved higher on the prospects for looser monetary policy after the PBOC said the global outlook is worsening and it will “preemptively adjust and fine-tine policies according to changing conditions.” Japanese stocks gained, led by strength in exporters, as a rally in USD/JPY to a 5-week high improved the earnings prospects of exporters.
The dollar index (DXY00 +0.49%) is up +0.51% at a 16-month high. EUR/USD (^EURUSD -0.60%) is down -0.61% at a 16-month low. USD/JPY (^USDJPY +0.08%) is up +0.04% at a 5-week high.
Dec 10-year T-note prices (ZNZ18 +0-065) are up +6.5 ticks at a 1-week high on carry-over support from a rally in German bunds to a 1-week high as European political risks boost safe-haven demand for bunds.
Japan Oct PPI rose +0.3% m/m and +2.9% y/y, stronger than expectations of +0.1% m/m and +2.8% y/y.
Japan Oct machine tool orders fell -1.1% y/y, the first decline in nearly 2 years.
U.S. Stock Preview
Key U.S. news today includes: (1) Veterans Day (stock and commodity markets open, cash Treasury and forex trading closed), (2) San Francisco Fed President Mary Daly (voter) speaks on the economic outlook at a regional development conference in Idaho Falls, Idaho.
Notable Russell 1000 earnings reports today include: AXA Equitable (consensus $0.91), UGI (-0.04), AECOM (0.82).
U.S. IPO’s scheduled to price today: Alzheon Inc (ALZH).
Equity conferences during the remainder of this week: Abu Dhabi International Petroleum Exhibition & Conference on Mon, American Heart Association Scientific Conference on Mon, BlackLine The Accounting & Finance Innovation Summit on Mon, J.P. Morgan Ultimate Services Investor Conference on Mon, UBS Global Technology Conference on Mon-Wed, Chrome Dev Summit 2018 on Mon-Wed, Edison Electric Institute Financial Conference on Tue, Needham Networking & Security Conference on Tue, eGain DX Conference on Tue, Morgan Stanley Consumer Conference on Tue, Morgan Stanley Global Chemicals Conference on Tue-Wed, Stifel Health Care Conference on Tue-Wed, Morgan Stanley Global Consumer & Retail Conference on Tue-Wed, RBC Technology, Internet, Media and Telecommunications Conference on Tue-Wed, Citi Financial Technology Conference on Tue-Wed, Credit Suisse Health Care Conference on Tue-Wed, JP Morgan Energy Technology Tour on Tue-Wed, Jefferies Health Care Conference on Wed, National Multifamily Housing Council OPTECH Conference on Wed, William Blair Benefit Technology Conference on Wed, Bank of America Merrill Lynch Global Energy Conference on Wed-Thu, Barclays Global Automotive Conference on Wed-Thu, Morgan Stanley European Technology, Media & Telecom Conference on Wed-Thu, Canaccord Genuity Medical Technologies and Diagnostics Forum on Thu, Deutsche Bank Lithium & Energy Storage Conference on Thu, Deutsche Bank Medtools & Diagnostics One-on-One Day on Thu, Bank of America Merrill Lynch Future of Financials Conference on Fri.
