Overnight Markets And News
Dec E-mini S&Ps (ESZ18 -0.11%) this morning are down -0.13% and European stocks are down -0.01% as U.S./China trade concerns linger. The WSJ reported that China may turn down a U.S. offer of trade talks if the U.S. imposes tariffs on an extra $200 billion of Chinese goods. President Trump tweeted early this morning that “if countries will not make fair deals with us, they will be tariffied.” Higher interest rates added to negative sentiment for equities as the German 10-year bund yield climbed to a 1-1/2 month high of 0.468% on hawkish comments from ECB Governing Council member Vasiliauskas who said there’s no reason to extend ECB stimulus. Losses in European stocks were limited after the Bundesbank said in its monthly economic report that “the upswing in Germany should fundamentally remain intact, not least because of the persistently good domestic economy.” Asian stocks settled mostly lower: Japan closed for holiday, Hong Kong -1.30%, China -1.11%, Taiwan -0.36%, Australia +0.32%, Singapore -0.63%, South Korea -0.69%, India -1.33%. Markets in Hong Kong and China closed lower on U.S./China trade tensions along with concern about damages from Typhoon Mangkhut which hit Hong Kong and southern China over the weekend.
The dollar index (DXY00 -0.24%) is down -0.21. EUR/USD (^EURUSD +0.35%) is up +0.29% on hawkish comments from ECB Governing Council member Vasiliauskas who said, “there’s no ground to talk about extension of stimulus at this point in time given the domestic euro area growth.” USD/JPY (^USDJPY unch) is up +0.02%.
Dec 10-year T-note prices (ZNZ18 -0-030) are down -3 ticks at a 1-1/2 month low.
ECB Governing Council member Vasiliauskas said “international trade is raising questions, but there’s no ground to talk about extension of stimulus at this point in time given the domestic euro area growth.”
The Bundesbank in its monthly economic report said, “The upswing in Germany should fundamentally remain intact, not least because of the persistently good domestic economy.” The overall pace of economic expansion in Germany should “improve markedly” after the auto industry overcomes “conversion problems” to new emission-test procedures.
