Morning Call For October 29, 2015

OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 -0.40%) are down -0.37% and European stocks are down -0.41% after the Fed said yesterday it is still considering an interest rate increase this year. The markets await today’s data on U.S. Q3 GDP and weekly initial unemployment claims to see if the economy is strong enough to handle an interest rate hike. Weakness in bank stocks is undercutting European equities with Deutsche Bank AG and Barclays PLC both down at least 4.5%. Asian stocks settled mixed: Japan +0.17%, Hong Kong -0.60%, China +0.36%, Taiwan -1.10%, Australia -1.28%, Singapore-1.28%, South Korea -0.34%, India -0.75%. China’s Shanghai Composite closed higher on speculation the Chinese government will provide additional stimulus to spur growth after Premier Li Keqiang said that China needs annual growth of at least 6.53% over the next 5 years to meet the government’s goal for a “moderately prosperous society.” Japan’s Nikkei Stock Index closed higher as the BOJ began a 2-day policy meeting today.

The dollar index (DXY00 -0.38%) is down -0.46%. EUR/USD (^EURUSD) is up +0.39% after an unexpected increase in Eurozone Oct economic confidence to a more than 4-year high reduces the chances of additional easing from the ECB. USD/JPY (^USDJPY) is down -0.18% after stronger-than-expected Japan Sep industrial production curbed speculation the BOJ will expand QE and boosted the yen.

Dec T-note prices (ZNZ15 -0.06%) are down -1 tick at a 1-month low after the Fed yesterday left open the possibility of an interest rate increase at the Dec FOMC meeting.

Eurozone Oct economic confidence unexpectedly rose +0.3 to 105.9, stronger than expectations of -0.5 to 105.1 and the highest in 4-1/3 years.

Japan Sep industrial production rose +1.0% m/m and fell -0.9% y/y, stronger than expectations of -0.6% m/m and -2.6% y/y.