OVERNIGHT MARKETS AND NEWS
Dec E-mini S&Ps (ESZ17 -0.01%) this morning are little changed, down -0.02%, after they rose to a record nearest-futures high in overnight trade. Strength in energy stocks lifted the overall market after Dec WTI crude oil (CLZ17 -0.10%) posted a new 2-1/3 year high in overnight trade. European stocks are down slightly by -0.17% after German Sep industrial production fell more than expected. European stocks were also undercut by disappointing quarterly earnings results from BMW AG and Associated British Foods Plc. Asian stocks settled mostly higher: Japan +1.73%, Hong Kong +1.39%, China +0.75%, Taiwan +0.50%, Australia +1.02%, Singapore +0.92%, South Korea -0.19%, India -1.07%. China’s Shanghai Composite climbed to a 1-week high as the rally in crude oil to a 2-1/3 year high boosted Chinese energy stocks. Japan’s Nikkei Stock Index soared to a 25-3/4 year high, bolstered by strong corporate quarterly earnings results and by Monday’s rally in USD/JPY to a 7-1/2 month high. Japanese consumer stocks also gained on optimism that consumer spending may improve after Japan Sep labor cash earnings rose +0.9% y/y, its largest increase in 14 months.
The dollar index (DXY00 +0.36%) is up +0.30% at a 1-week high as an increase in the 10-year T-note yield boosts the dollar’s interest rate differentials. EUR/USD (^EURUSD) is down -0.36% at a 3-1/2 month low and was pressured by the weaker-than-expected German Sep industrial production. USD/JPY (^USDJPY) is up +0.40%.
Dec 10-year T-note prices (ZNZ17 -0.06%) are down -2 ticks.
German Sep industrial production fell -1.6% m/m, weaker than expectations of -0.9% m/m and the biggest decline in 9 months.
Eurozone Sep retail sales rose +0.7% m/m, stronger than expectations of +0.6% m/m and the largest increase in 11 months.
Japan Sep labor cash earnings rose +0.9% y/y, stronger than expectations of +0.5% y/y and the biggest increase in 14 months. Sep real cash earnings fell -0.1% y/y, stronger than expectations of -0.2% y/y.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Sep JOLTS job openings (expected -29,000 to 2.053 million, Aug -58,000 to 6.082 million), (2) Fed Governor Randal Quarles speaks at The Clearing House annual conference in New York, (3) Treasury auctions $24 billion of 3-year T-notes, (4) Sep consumer credit (expected +$17.5 billion, Aug +$13.965 billion).
Leave A Comment