Morning Call For October 13, 2015

OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 -0.39%) are down -0.44% and European stocks are down -1.21% on global growth concerns after China Sep imports fell by the most in 7 months and after German Oct ZEW investor confidence fell to the lowest in a year. Losses in stocks were limited on increased M&A activity after SABMiller Plc agreed to be purchased by Anheuser-Busch InBev SA for 69 billion pounds ($106 billion). Asian stocks settled mostly lower: Japan -1.11%, Hong Kong -0.57%, China +0.17%, Taiwan -0.07%, Australia -0.57%, Singapore -1.56%, South Korea -0.18%, India -0.21% . Asian stocks emerging markets were undercut by the weak Chinese Sep trade data, although China’s Shanghai Composite managed to eke out a slight gain on speculation the weak trade data will prompt the government to boost stimulus measures.

The dollar index (DXY00 -0.02%) is down -0.02% at a 3-week low. EUR/USD (^EURUSD) is up +0.20% at a 3-week high. USD/JPY (^USDJPY) is down-0.24% at a 1-week low.

Dec T-note prices (ZNZ15 +0.04%) are up +3 ticks.

The German Oct ZEW survey expectations of economic growth fell -10.2 to 1.9, a bigger decline than expectations of -5.6 to 6.5 and the lowest in a year. The Oct ZEW survey current situation fell -12.3 to 55.2, a larger decline than expectations of -3.5 to 64.0 and the lowest in 7 months.

The China Sep trade balance unexpectedly widened to a $60.34 billion surplus, more than expectations of a $48.21 billion surplus and the largest surplus in 7 months. Sep exports fell -3.7% y/y, a smaller decline than expectations of -6.0% y/y. Sep imports dropped -20.4% y/y, more than expectations of -16.0% y/y and the biggest decline in 7 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) St. Louis Fed President James Bullard’s speech to the National Association for Business Economics meeting.