Overnight Markets And News
Dec E-mini S&Ps (ESZ18 +0.63%) this morning are up +0.52% and European stocks are up +0.50%. Energy stocks are higher with Jan WTI crude oil (CLF19 +1.95%) up +1.59% after API inventory data late Tuesday showed U.S. crude stockpiles fell -1.55 million bbl last week. Technology stocks are moving higher as well on bargain hunting after this week’s sharp sell-off. An easing of Italian political concerns also gave European stocks a boost after La Stampa reported that Italian Deputy Prime Minister Salvini said he may be willing to take steps to lower Italy’s budget deficit. Asian stocks settled mixed: Japan -0.35%, Hong Kong +0.51%, China +0.21%, Taiwan -0.03%, Australia -0.51%, Singapore +0.39%, South Korea -0.49%, India -0.77%. Japan’s Nikkei Stock Index tumbled to a 3-week low as it followed losses in U.S. stock indexes on Tuesday, although China’s Shanghai Composite recovered from early losses and closed higher.
The dollar index (DXY00 -0.18%) is down -0.20%. EUR/USD (^EURUSD +0.26%) is up +0.21%. USD/JPY (^USDJPY +0.24%) is up +0.23%.
Dec 10-year T-note prices (ZNZ18 -0-075) are down -6.5 ticks.
The Japan Sep all-industry activity index fell -0.9% m/m, right on expectations.
UK Oct public sector net borrowing was +8.0 billion pounds, stronger than expectations of +5.6 billion pounds and he most in 23-months.
U.S. Stock Preview
Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -3.2% to 316.7 with purchase sub-index -2.3% to 220.8 and refi sub-index -4.3% to 824.7), (2) weekly initial unemployment claims (expected -1,000 to 215,000, previous +2,000 to 216,000) and continuing claims (expected -26,000 to 1.650 million, previous +46,000 to 1.676 million), (3) Oct durable goods orders (expected -2.5% and +0.4% ex transportation, Sep +0.7% and unch ex transportation), (4) Oct leading indicators (expected +0.1%, Sep +0.5%), (5) Oct existing home sales (expected +1.0% to 5.20 million, Sep -3.4% to 5.15 million), (6) final-Nov University of Michigan U.S. consumer sentiment index (expected unch at 98.3, prelim-Nov -0.3 to 98.3), (7) EIA weekly Petroleum Status Report, (8) Treasury auctions $11 billion 10-year TIPS.
