Morning Call For Friday, Oct. 12

Overnight Markets And News

Dec E-mini S&Ps (ESZ18 +1.11%) this morning are up +1.02% and European stocks are up +0.38% as global equity markets recover from their 2-day rout. JPMorgan Chase is up 1% in pre-market trading to lead bank stocks higher after it reported Q3 adjusted EPS of $2.36, above consensus of $2.26. Strength in mining stocks and commodity producers are also higher with Dec COMEX copper (HGZ18 +0.70%) up +0.54% at a 1-week high. Stronger-than-expected Eurozone Aug industrial production and concern about tight supplies is pushing copper prices higher after LME copper inventories dropped -3,500 MT to a 2-1/3 year low of 166,600 MT. Concern about the impact of the U.S.-China trade war eased slightly and improved confidence in the global economic outlook after China’s Sep imports remained robust and its Sep exports rose more than expected. Asian stocks settled higher: Japan +0.46%, Hong Kong +2.12%, China +0.91%, Taiwan +2.44%, Australia +0.2-%, Singapore +0.71%, South Korea +1.53%, India +2.15%. China’s Shanghai Composite rebounded from a new 3-3/4 year low and closed higher on optimism that escalation of the U.S.-China trade war can be averted after a report said the U.S. Treasury advised Secretary Mnuchin that China is not manipulating the yuan. Chinese stocks also received a boost on a WSJ report that President Trump plans to meet Chinese President Xi late next month. The rebound in Chinese stocks lifted Japan’s Nikkei Stock Index off of a 1-month low and into positive territory.

The dollar index (DXY00 +0.07%) is up +0.08%. EUR/USD (^EURUSD -0.10%) is down -0.09%. USD/JPY (^USDJPY+0.13%) is up +0.06%.

Dec 10-year T-note prices (ZNZ18 -0-095) are down -8 ticks.

Eurozone Aug industrial production rose +1.0% m/m, stronger than expectations of +0.5% m/m.

ECB President Draghi said preserving openness in trade is crucial if the global economy is to thrive and secure its growth potential and “the positive developments in the Eurozone are not independent of the global growth momentum.”