Overnight Markets And News
Dec E-mini S&Ps (ESZ18 -0.31%) this morning are down -0.25% ahead of the minutes of the Sep 25-26 FOMC meeting, which will be looked at for clues as to the pace of future Fed rate hikes or if policy makers may be close to pausing their rate hike campaign. European stocks are down -0.09%, led by losses in automakers, after data showed Eurozone Sep new car registrations plunged -23%. Losses in European stocks were limited as government bond yields fell with the 10-year German bund yield dropping to a 2-week low of 0.464%. Asian stocks settled mixed: Japan +1.29%, Hong Kong closed for holiday, China +0.60%, Taiwan -0.02%, Australia +1.18%, Singapore +1.21%, South Korea +1.14%, India -1.09%. China’s Shanghai Composite recovered from a 3-3/4 year low and moved higher after data showed Chinese credit growth expanded more than expected in September.
The dollar index (DXY00 +0.31%) is up +0.27%. EUR/USD (^EURUSD -0.28%) is down -0.24%. USD/JPY (^USDJPY +0.01%) is up +0.03%.
Dec 10-year T-note prices (ZNZ18 -0-020) are down -4.5 ticks.
EU Sep new car registrations fell -23.5% y/y to 1.091 million and year-to-date are up +2.5% at 11,951,957.
China Sep new yuan loans increase by 1.380 trillion yuan, stronger than expectations of 1.359 trillion yuan. Sep aggregate financing increased by +2.210 trillion yuan, stronger than expectations of +1.554 trillion yuan and the most in 8 months.
UK Sep CPI of +0.1% m/m and +2.4% y/y was weaker than expectations of +0.3% m/m and +2.6% y/y. Sep core CPI rose +1.9% y/y, weaker than expectations of +2.0% y/y.
The UK Aug house price index rose +3.2% y/y, stronger than expectations of +2.8% y/y.
U.S. Stock Preview
Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -1.7% to 346.7 with purchase sub-index -1.1% to 238.0 and refi sub-index -2.6% to 921.2), (2) Sep housing starts (expected -5.6% to 1.210 million, Aug +9.2% to 1.282 million) (3) EIA weekly Petroleum Status Report, (4) Fed Governor Lael Brainard speaks on Fintech and Financial Inclusion at a Boston Fed conference, (5) minutes of the Sep 25-26 FOMC meeting (funds rate target range raised by +25 bp to 2.00%/2.25%).
