OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 +0.22%) this morning are up +0.27% at a new record high on optimism over the U.S. economic outlook and European stocks are up +0.49% on strength in technology stocks as Ericson AB rose over 3% after announcing a pan to cut costs by $1.2 billion and Illiad SA gained over 4% after reporting stronger-than-expected Q3 revenue results. Asian stocks closed mixed: Japan +1.14%, Hong Kong +0.34%, China-0.56%, Taiwan +0.69%, Australia -1.35%, Singapore +0.65%, South Korea -0.46%, India -0.24%. China’s Shanghai Stock Index erased an early rally and closed lower after a person with knowledge of the talks said that China’s leaders have discussed lowering the 2015 economic target below this year’s target of 7.5% after today’s economic data showed weaker-than-expected industrial output and retail sales. Losses in Chinese stocks were limited on the outlook for additional stimulus measures after the PBOC said it was looking to support lending to small businesses. Commodity prices are mixed. Dec crude oil (CLZ14 -0.89%) is down -0.58%. Dec gasoline (RBZ14 -1.71%) is down -1.32%. Dec gold (GCZ14 +0.28%) is up +0.15%. Dec copper (HGZ14 +0.60%) is up +0.83%. Agriculture prices are mixed. The dollar index (DXY00 -0.14%) is down -0.14%. EUR/USD (^EURUSD) is up +0.18%. USD/JPY (^USDJPY) is up +0.15%. Dec T-note prices (ZNZ14 -0.02%) are down -3 ticks.
China Oct industrial production rose +7.7% y/y, less than expectations of +8.0% y/y. Oct retail sales rose +11.5% y/y, less than expectations of +11.6% y/y and the smallest pace of increase in 8-1/2 years. Oct fixed assess investment (excluding rural households) rose +15.9% y/y, less than expectations of +16.0% y/y and the slowest pace of increase in 13-3/4 years.
The ECB Survey of Professional Forecasters cut their Eurozone 2014 GDP estimate to +0.8% from +1.0% in Aug and lowered their 2014 inflation forecast to +0.5% from +0.7% in Aug.
