OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 -0.06%) this morning are down 0.06% on concern Special Counsel Mueller’s criminal investigation between Trump campaign officials and Russia is deepening. Two people familiar with the matter said officials with Trumps’ election campaign were served subpoenas in mid-October for documents related to any contacts they had with Russian operatives. Losses were limited on optimism that U.S. legislators are closer to passing tax cuts after Republican Senator Johnson, who had opposed the Senate’s tax plan, said he is optimistic his concerns can be addressed. European stocks are up +0.08% after ECB President Draghi said that “robust recovery” means the economy “may be becoming more resilient to new shocks.” Asian stocks settled mixed: Japan +0.20%, Hong Kong +0.62%, China -0.48%, Taiwan +0.72%, Australia +0.23%, Singapore +1.23%, South Korea -0.05%, India +0.71%. China’s Shanghai Composite fell to a 1-1/2 week low after the state media Xinhua warned some stock prices were climbing too fast, which triggered a selloff in the overall market. Xinhua said that shares of Kweichow Moutai, China’s biggest liquor maker, should rise at a slower pace. Japan’s Nikkei Stock index rose to a 1-week high after expectations of U.S. tax cuts improved, although the index gave up most of its gains after exporter stocks weakened when USD/JPY fell to a 4-week low.

The dollar index (DXY00 -0.24%) is down -0.20%. EUR/USD (^EURUSD) is up +0.20% after ECB President Draghi said as prices are gradually picking up, wage rises will follow and push inflation closer to the ECB’s goal. USD/JPY (^USDJPY) is down -0.40% at a 4-week low.

Dec 10-year T-note prices (ZNZ17 +0.03%) are little changed, down -0.5 of a tick.

San Francisco Fed President Williams said the economy continues to grow “very nicely,” and U.S. is in a period of “relative calm.” He added that in his view “a perfectly reasonable path for policy would be one more rate increase this year and three next year.”