OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 +0.99%) this morning are up +0.87% on positive carryover from Wednesday afternoon’s Dec 16-17 FOMC meeting minutes that signaled the Fed will remain patient in raising interest rates. European stocks are up +2.12% as signs of economic weakness in Europe spurs optimism that the ECB will expand stimulus. Eurozone producer prices in Nov fell more than expected while German Nov factory orders declined more than forecast. Greece’s ASE Stock Index fell over 1% today to a 2-year low as polls show the anti-austerity party Syriza is leading ahead of Greece’s Jan 25 elections. As expected, the BOE today left its benchmark interest rate unchanged at 0.50% and maintained its asset purchase target at 375 billion pounds. Asian stocks closed mostly higher: Japan +1.67%, Hong Kong +0.65%, China -2.32%, Taiwan +1.74%, Australia +0.52%, Singapore +1.42%, South Korea +1.42%, India +1.36%. Chinese stocks bucked the trend and closed lower as China’s Shanghai Index tumbled over 2% after analysts from Bank of America and HSBC Holdings Plc forecast declines this year for Chinese stocks. Commodity prices are mixed. Feb crude oil (CLG15 +0.39%) is up +0.78%. Feb gasoline (RBG15 +0.16%) is up +0.20%. Feb gold (GCG15 -0.40%) is down -0.35%. Mar copper (HGH15 +0.65%) is up +0.24%. Agriculture prices are mixed. The dollar index (DXY00 +0.64%) is up +0.58% at a 9-year high. EUR/USD (^EURUSD) is down -0.60% at a 9-year low on expectations for the ECB to begin large-scale government bond purchases when it meets on Jan 22. USD/JPY (^USDJPY) is up +0.47%. Mar T-note prices (ZNH15 -0.30%) are down -10.5 ticks.
Eurozone Nov retail sales rose +0.6% m/m and +1.5% y/y, much better than expectations of +0.2% m/m and +0.2% y/y.
Eurozone Nov PPI fell -0.3% m/m and -1.6% y/y, more than expectations of -0.1% m/m and -1.4% y/y with the -1.6% y/y drop the fastest pace of decline in 8 months.
The Eurozone Dec business climate indicator fell -0.13 to 0.04, a bigger decline than expectations of -0.01 to 0.17. Dec economic confidence was unchanged at 100.07, weaker than expectations of +0.04 to 101.2.
