Morning Call For October 28, 2015

OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 +0.23%) are up +0.19% and European stocks are up +0.65% as Apple climbed nearly 2% in pre-market trading after reporting better-than-expected quarterly profits late yesterday. The markets also await the Fed’s interest rate announcement later today as to whether there will be an interest rate increase this year. European stocks also garnered support from a decline in the German 10-year bund yield to a 5-1/2 month low of 0.431% on the prospects of additional ECB easing after comments from ECB Executive Board member Coeure who said have been “lively” discussions within the ECB about additional measures to promote growth and boost inflation. Asian stocks settled mostly lower: Japan +0.67%, Hong Kong -0.80%, China -1.72%, Taiwan -0.41%, Australia -0.20%, Singapore -0.39%, South Korea -0.10%, India -0.78%. China’s Shanghai Composite fell on growth concerns after the Oct Westpac-MNI consumer sentiment fell to a record low and after UBS cut its China 2016 GDP forecast to 6.2% from 6.5%. Japanese stocks were the only bright spot in Asian markets as the Nikkei Stock Index closed higher on speculation the BOJ will increase stimulus when it meets this Thursday and Friday.

The dollar index (DXY00 -0.17%) is down -0.14%. EUR/USD (^EURUSD) is up +0.14%. USD/JPY (^USDJPY) is down -0.11%.

Dec T-note prices (ZNZ15 -0.07%) are down -2 ticks.

ECB Executive Board member Coeure said that the risks have increased that inflation will remain below the ECB’s goal of 2.0% and that warrants vigilance from policy makers. He added that there have been “lively” discussions within the ECB of whether the deposit rate could be lowered from its current -0.2% or about expanding asset purchases.

The China Oct Westpac-MNI consumer sentiment fell -8.5 to 109.7, the lowest since the data series began in 2007.