OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 +0.14%) this morning are up +0.14%, although European stock markets remained closed for the Christmas holiday and the U.K. markets are shut for Boxing Day. The Russian ruble posted a 3-week high against the dollar before falling back on speculation the government is ordering exporters to sell foreign currency. Asian stocks closed mostly higher: Japan +0.06%, China +3.31%, Hong Kong and Australia closed for holiday, Taiwan +0.60%, Singapore +0.23%, South Korea -0.01%, India +0.12%. Japanese stocks closed higher on speculation the BOJ may be forced to expand stimulus after Japan Nov CPI rose at the slowest pace in 8 months and after Nov industrial production unexpectedly declined. Chinese stocks gained on reports the PBOC plans to waive temporarily a requirement for banks to set aside reserves for some deposits. Commodity prices are mostly higher. Feb crude oil (CLG15 +0.64%) is up +0.70%. Feb gasoline (RBG15 +0.68%) is up +0.61%. Feb gold (GCG15 +1.99%) is up +2.05%. Mar copper (HGH15 +0.04%) is down -0.05% after weekly Shanghai copper inventories rose +12,693 MT to a 4-1/2 month high of 105,522 MT, a sign of weak Chinese demand. Agriculture prices have not yet opened. The dollar index (DXY00 +0.05%) is up +0.12%. EUR/USD (^EURUSD) is down -0.27%. USD/JPY (^USDJPY) is up +0.16%. Mar T-note prices (ZNH15 +0.02%) are up +1 tick.
Japan Nov national CPI rose +2.4% y/y, less than expectations of +2.5% y/y and the slowest pace of increase in 8 months. Nov national CPI ex-fresh food climbed +2.7% y/y, right on expectations, and Nov national CPI ex food & energy rose +2.1% y/y, right on expectations.
The Japan Nov jobless rate remained unchanged at 3.5%, right on expectations. The Nov job-to-applicant ratio unexpectedly rose +0.02 to 1.12, better than expectations of unch at 1.10 and the highest in 22-1/2 years.
Japan Nov industrial production unexpectedly fell -0.6% m/m, weaker than expectations of +0.8% m/m. On an annual basis Nov industrial production fell-3.8% y/y, more than expectations of -2.4% y/y and the most in 17 months.
