OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 -0.17%) this morning are down -0.09% and European stocks are down -0.17% on concern about slowing growth in China after China October industrial production rose less than expected and China October retail sales posted their slowest pace of increase in a year. Losses in European stocks were limited after German Q3 GDP rose more than expected and after the German Nov ZEW survey expectations of economic growth climbed to a 6-month high. Asian stocks settled mostly lower: Japan unch, Hong Kong -0.10%, China -0.53%, Taiwan +0.03%, Australia -0.88%, Singapore -0.59%, South Korea -0.21%, India -0.28%. Chinese stocks fell back on weaker-than-expected economic data on Oct industrial production and retail sales and Japan’s Nikkei Stock Index fell to a 1-1/2 week low before recovering as the market consolidates following its sharp rally to a 25-3/4 year high last week.
The dollar index (DXY00 -0.27%) is down -0.25% at 2-week low. EUR/USD (^EURUSD) is up +0.50% at a 2-week high on stronger-than-expected German Q3 GDP. USD/JPY (^USDJPY) is up +0.02%.
Dec 10-year T-note prices (ZNZ17 -0.01%) are up +1 tick.
Dallas Fed President Kaplan said he’s “actively considering” a Fed rate hike in Dec.
Eurozone Q3 GDP rose +0.6% q/q and +2.5% y/y, right on expectations.
Eurozone Sep industrial production fell -0.6% m/m, right on expectations.
German Q3 GDP rose +0.8% q/q and +2.3% y/y (nsa), stronger than expectations of +0.6% q/q and +2.0% (nsa).
The German Nov ZEW survey expectations of economic growth rose +1.1 to 18.7, weaker than expectations of +1.9 to 19.5 but still a 6-month high.
China Oct industrial production rose +6.2% y/y, weaker than expectations of +6.3% y/y.
China Oct retail sales rose +10.0% y/y, weaker than expectations of +10.5% y/y and the slowest pace of increase in a year.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Chicago Fed President Charles Evans (voter) takes part in a panel discussion at an ECB conference in Frankfurt on “Communications Challenges for Policy Effectiveness, Accountability and Reputations,” (2) Fed Chair Janet Yellen takes part in a ECB panel discussion on “Challenges and Opportunities of Central Bank Communication” with ECB President Mario Draghi, BOJ Governor Haruhiko Kuroda and BOE Governor Mark Carney, (3) Oct PPI final demand (expected +0.1% m/m and +2.3% y/y, Sep +0.4% m/m and +2.6% y/y) and Oct PPI ex food & energy (expected +0.2% m/m and +2.2% y/y, Sep +0.4% m/m and +2.2% y/y), (4) Atlanta Fed President Raphael Bostic (non-voter) speaks on the economic outlook and monetary policy at a forum in Montgomery, Alabama.
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