OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 +0.05%) this morning are down -0.01% ahead of the release of Oct non-farm payrolls and European stocks are down-0.90%, led by a slide in bank stocks as National Bank of Greece SA and Credit Agricole Sa are both down more than 4%. Limiting losses in European stocks is the +5.5% m/m increase in German Sep exports, the most since May 2010, along with a rally in Allianz SE, Europe’s biggest insurer, which is up over 4% after earnings beat estimates. The ruble weakened to a record low of 48.6495 per dollar after Ukraine said dozens of tanks and other military vehicles crossed the border into Ukraine from Russia. Ongoing skirmishes in eastern Ukraine between Ukraine forces and pro-Russian rebels threatens to break a 2-month-long truce. Asian stocks closed mixed: Japan +0.52%, Hong Kong -0.42%, China -0.16%, Taiwan +0.24%, Australia +0.78%, Singapore -0.14%, South Korea +0.08%, India -0.17%. China’s Shanghai Stock Index fell back from a 2-1/2 year high and closed lower after China Railway Group Ltd. and China Railway Construction Corp. both fell more than 4% to lead the overall market lower after Mexico canceled a $4.3 billion contract for the construction off a high-speed train by the Chinese companies. Commodity prices are mixed. Dec crude oil (CLZ14 +0.47%) is up +0.24%. Dec gasoline (RBZ14 +0.11%) is down -0.02%. Dec gold (GCZ14 +0.04%) is up +0.08%. Dec copper (HGZ14 -0.02%) is down -0.02%. Agriculture prices are mixed. The dollar index (DXY00 +0.03%) is unchanged. EUR/USD (^EURUSD) is up +0.14%. USD/JPY (^USDJPY) is unchanged. Dec T-note prices (ZNZ14 -0.12%) are down -3.5 ticks.
German Sep industrial production rose +1.4% m/m, less than expectations of +2.0% m/m, although Aug was revised up to -3.1% m/m from the originally reported -4.0% m/m. On an annual basis, Sep industrial production fell -0.1% y/y, a smaller decline than expectations of -0.6% y/y.
