OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ16 +0.18%) this morning are little changed as the market awaits this morning’s U.S. Q3 GDP report, which is expected to improve to +2.5% from Q2’s +1.4%. E-minis have been able to shake off negative overnight news that includes a -4% sell-off in Amazon on a disappointing holiday sales forecast and a -0.53% drop in European stocks. However, Alphabet is up +1% after better than expected earnings and revenue news.

The Euro Stoxx 50 index this morning is down -0.53% on disappointing earnings results and carry-over concerns about Thursday’s sharp rise in the 10-year T-note yield to a new 5-month high. Anheuser-Busch InBev is down -4.5% this morning after the firm cut its revenue guidance. Novo Nordisk is down -13% after the company cut its long-term earnings growth target.

The Russian central bank today left its key rate unchanged at 10.0%, which was in line with market expectations. The Russian central bank in September pledged to leave its rates high at least through year-end in an attempt to curb inflation. The market consensus is for a rate cut in early 2017 if Russian inflation is contained and the ruble is stable.

Asian stock markets today closed mixed with downward pressure from Thursday’s sell-off in U.S. stocks: Japan +0.63%, Hong Kong -0.77%, China Shanghai Composite -0.26%, Taiwan +0.08%, Australia -0.22%, Singapore -0.45%, South Korea -0.05%, India +0.09%, Turkey -0.52%.

Dec 10-year T-notes (ZNZ16 -0.08%) this morning are down -3 ticks on carry-over weakness from yesterday’s rise in the 10-year breakeven inflation expectations rate to a 1-1/4 year high and on increased expectations for a Fed rate hike in December.

The dollar index (DXY00 -0.04%) is slightly lower by -0.03% this morning. EUR/USD (^EURUSD) is up +0.12% and USD/JPY (^USDJPY) is little changed. The dollar showed strength on Thursday on positive U.S. interest rate differentials with the 10-year T-note yield rising to a new 5-month high.

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