OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 +0.01%) this morning are down -0.02% ahead of the Nov ADP employment report, while European stocks are up +0.10% as signs of slower growth in the Eurozone bolstered the case for more stimulus after the Eurozone Nov Markit composite PMI was revised lower to its slowest pace of expansion in 16 months. The Russian ruble fell back from a record low of 54.9090 per dollar after the Bank of Russia said it sold $700 million of dollars on Dec 1, its first intervention since moving to a free float 3-weeks ago. Asian stocks closed mostly higher: Japan +0.32%, Hong Kong -0.95%, China +1.49%, Taiwan +1.55%, Australia +0.77%, Singapore -0.57%, South Korea +0.10%, India unchanged. Japan’s Nikkei Stock Index jumped to a 7-1/3 year high as a plunge in the yen to a 7-1/3 year low against the dollar boosts the earnings prospects of Japanese exporters. China’s Shanghai Stock Index rose to a 3-1/3 year high on speculation the PBOC will loosen monetary policy further to support economic growth. Commodity prices are mixed. Jan crude oil (CLF15 +0.30%) is up +0.48%. Jan gasoline (RBF15 -0.67%) is down -0.55%. Feb gold (GCG15 +0.26%) is up +0.11%. Mar copper (HGH15 -0.54%) is down -0.61%. Agriculture prices are weaker. The dollar index (DXY00 +0.22%) is up +0.27% at a new 5-1/2 year high. EUR/USD (^EURUSD) is down -0.48% at a 2-1/4 year low on speculation the ECB will expand stimulus measures when it meets tomorrow. USD/JPY (^USDJPY) is up +0.19% at a fresh 7-1/3 year high. Mar T-note prices (ZNH15 -0.09%) are down -3.5 ticks.
The Eurozone Nov Markit composite PMI was revised lower to 51.1 from the originally reported 51.4, the slowest pace of expansion in 16 months.
Eurozone Oct retail sales rose +0.4% m/m and +1.4% y/y, a smaller increase than expectations of +0.5% m/m and +1.6% y/y.
The UK Nov Markit/CIPS services PMI rose +2.4 to 58.6, a larger increase than expectations of +0.3 to 56.5.
