OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 -0.52%) this morning are down -0.43% ahead of U.S. Q3 GDP data that may show a slowdown in economic growth and European stocks are down -1.56% led by a slide in European bank stocks after the head of the Eurozone banking authority said that recent stress tests on banks weren’t foolproof. European stocks fell even after Eurozone Oct economic confidence unexpectedly rose and after German Oct unemployment unexpectedly declined. Asian stocks closed mostly higher: Japan +0.67%, Hong Kong -0.49%, China +0.72%, Taiwan -0.18%, Australia +0.52%, Singapore +0.32%, South Korea +0.08%, India +0.92%. Japanese stocks closed higher, with the Nikkei Stock Index at a 3-week high, as exporters gained after the yen slipped to a 3-week low against the dollar, which boosts the earnings prospects of exporters. China’s Shanghai Stock Index climbed to a 1-1/2 year high on speculation that the proposed trading link between the Hong Kong and Shanghai stock exchanges will spur foreign inflows into Chinese stocks. Commodity prices are mostly lower. Dec crude oil (CLZ14 -0.96%) is down -1.03%. Dec gasoline (RBZ14 -0.58%) is down-0.68%. Dec gold (GCZ14 -1.71%) is down -1.58%% at a 3-week low. Dec copper (HGZ14 -1.32%) is down -1.30%. Agriculture prices are higher. The dollar index (DXY00 +0.31%) is up +0.30% at a 3-week high. EUR/USD (^EURUSD) is down -0.32% at a 3-week low. USD/JPY (^USDJPY) is up +0.11% at a 3-week high. Dec T-note prices (ZNZ14 +0.09%) are up +2 ticks.
Eurozone Oct economic confidence unexpectedly rose +0.8 to 100.7, better than expectations of -0.2 to 99.7. The Oct business climate indicator rose +0.03 to 0.05 from a downward revised 0.02 in Sep, right on expectations.
German Oct unemployment unexpectedly fell -22,000, better than expectations of a +4,000 increase and the biggest decline in 6 months. The Oct unemployment rate remained unchanged at 6.7%, right on expectations and the lowest since data for a reunified Germany began in 1991.
