OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 -0.40%) this morning are down -0.29% and European stocks are down -0.59% at a 2-week low. A sharp reversal in the Nikkei Stock Index which soared to a 25-3/4 year high only to erase its gains and drop -0.20% has undercut other global bourses. Also, weakness in mining stocks is weighing on global stock indexes with Dec COMEX copper (HGZ17 -0.61%) down -0.63% to a 4-week low. European stocks failed to garner support from the European Commission’s upbeat assessment of the economy after it raised its Eurozone 2017 GDP forecast to 2.2% from a May estimate of 1.7%. Asian stocks settled mixed: Japan -0.20%, Hong Kong +0.79%, China +0.36%, Taiwan -0.70%, Australia +0.55%, Singapore +0.08%, South Korea -0.20%, India +0.10%. Japan’s Nikkei Stock Index retreated from a 25-3/4 year high and close lower on technical selling prompted by a fall in USD/JPY to 1 week low, which is negative for Japanese exporters.
The dollar index (DXY00 -0.32%) is down -0.33%. EUR/USD (^EURUSD) is up +0.32% after eh European Commission raised its Eurozone 2017 and 2018 GDP estimates. USD/JPY (^USDJPY) is down -0.51% at a 1-week low.
Dec 10-year T-note prices (ZNZ17 -0.09%) are down -3 ticks.
The European Commission raised its Eurozone 2017 GDP forecast to 2.2% from a May forecast of 1.7% and the fastest pace of expansion in 10-years and raised its Eurozone 2018 GDP forecast to 2.1% from 1.8%.
ECB Executive Board member Coeure said “nothing” justifies the end of ECB monetary support yet and the ECB will keep providing support until the Eurozone economy cab stand alone.
The German Sep trade balance widened to a surplus of 24.1 billion euros, higher than expectations of +22.3 billion euros and the largest surplus in 6 months. Sep exports fell -0.4% m/m, less than expectations of -1.3% m/m. Sep imports unexpectedly fell -1.0% m/m, weaker than expectations of +0.3% m/m.
China Oct CPI rose +1.9% y/y, stronger than expectations of +1.8% y/y and the fastest pace of increase in 9 months. Oct PPI rose +6.9% y/y, stronger than expectations of +6.6% y/y and matched September as the fastest pace of increase in 7 months.
Japan Sep core machine orders tumbled -8.1% m/m, weaker than expectations of -2.0% m/m and the largest decline in 3-1/3 years.
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