Morning Call For September 11, 2015

OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 -0.30%) are down -0.45% and European stocks are down -0.75% ahead of U.S. Aug producer prices and Sep University of Michigan consumer sentiment that is expected to decline for a third month. Energy producers and basic-resource companies are weaker and are dragging the overall market lower as commodity prices weakened. Declines in telecommunication stocks is also adding to weakness in European stocks after opposition from the European Union led Telenor ASA and TeliaSonera AB to scrap a merger of their Danish businesses and may reduce M&A activity in the telecommunication sector. Asian stocks closed mixed: Japan -0.19%, Hong Kong -0.27%, China +0.07%, Taiwan +0.45%, Australia -0.47%, Singapore closed for holiday, South Korea -1.45%, India -0.05%.

The dollar index (DXY00 +0.22%) is up +0.15%. EUR/USD (^EURUSD) is down -0.05% as it retreated from a 1-week high om comments from ECB Executive Board member Coeure who said ECB asset purchases will continue for “as long as necessary.” USD/JPY (^USDJPY) is down -0.04%.

Dec T-note prices (ZNZ15 +0.11%) are up +5.5 ticks.

ECB Executive Board member Coeure said that ECB “policy of very low interest rates and asset purchase will continue for as long as necessary as growth is still not strong enough to create a sufficient number of jobs.”

China Aug new yuan loans rose 809.6 billion yuan, less than expectations of 850.0 billion yuan.

The German Aug wholesale price index fell -0.8% m/m, the biggest decline in 8 months, and on an annual basis fell -1.1% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Aug PPI final demand (expected -0.1% m/m and -0.9% y/y, Jul +0.2% m/m and -0.8% y/y), (2) Aug PPI ex food & energy (expected +0.1% m/m and +0.7% y/y, Jul +0.3% m/m and +0.6% y/y), (3) preliminary Sep University of Michigan consumer sentiment (expected -0.8 to 91.1, Aug -1.2 to 91.9), (4) Aug monthly budget statement (expected -$84.100 billion, Jul -$149.187 billion).