Overnight Markets And News
Dec E-mini S&Ps (ESZ18 -0.37%) this morning are down -0.36% on concern the U.S.-China trade skirmish may persist after U.S. Vice President Pence said on Sunday that the U.S. wasn’t in a rush to end the trade war and would “not change course until China changes its ways.” Also, the Asia-Pacific Economic Cooperation (APEC) summit ended in tumult as the U.S. and China failed to agree on language in a final statement, the first time no final statement was issued since the annual APEC meetings began in 1993. European stocks are up +0.08% after Eurozone Sep construction output posted its biggest increase in 1-1/2 years and after the Bundesbank predicted “fairly strong growth” for the German economy in Q4. Asian stocks settled mostly higher: Japan +0.65%, Hong Kong +0.72%, China +0.91%, Taiwan +0.32%, Australia -0.64%, Singapore -0.60%, South Korea +0.24%, India +0.90%. China’s Shanghai Composite climbed to a 1-1/4 month high on speculation market support measures announced by the government since late October, including easing of trade restrictions and boosting liquidity and support for small companies, will spur domestic growth. A rebound in technology stocks lifted Japan’s Nikkei Stock Index, although gains were limited as exporters weakened when USD/JPY fell to a 2-week low.
The dollar index (DXY00 -0.04%) is down -0.07% at a 1-week low. EUR/USD (^EURUSD +0.01%) is up +0.04% at a 1-wek high. USD/JPY (^USDJPY -0.01%) is down -0.01% at a 2-week low.
Dec 10-year T-note prices (ZNZ18 -0-010) are down -2 ticks.
In its monthly report, the Bundesbank said, “the German economy is expected to see fairly strong growth again in the final quarter of 2018.”
Eurozone Sep construction output rose +2.0% m/m, the biggest increase in 1-1/2 years.
The Japan Oct trade balance was in deficit by -449.3 billion yen, wider than expectations of -70.0 billion yen and the largest deficit in 5 months. Oct exports rose +8.2% y/y, weaker than expectations of 8.9% y/y. Oct imports rose +19.9% y/y, stronger than expectations of +14.1% y/y and the biggest increase in 4-3/4 years.
