OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 -0.08%) this morning are down -0.16% ahead of the FOMC decision later today and European stocks are up +0.16% on better-than-expected earnings results from Total SA an Schneider Electric SE. Asian stocks closed mostly higher: Japan +1.46%, Hong Kong +1.27%, China +1.44%, Taiwan +1.48%, Australia -0.09%, Singapore +0.39%, South Korea +2.19%, India +0.81%. Japanese stocks rallied as the Nikkei Stock Index rose to a 1-1/2 week high after Japan’s industrial output last month rose more than expected by the most in 8 months. The Shanghai Stock Index climbed to a 1-1/2 week high after Hong Kong’s securities regulator said the preparatory work for a planned trade link with Shanghai had been completed, which boosted optimism that the link between the two exchanges will be launched sooner than expected. Commodity prices are mixed. Dec crude oil (CLZ14 +1.44%) is up +0.98%. Dec gasoline (RBZ14 +1.94%) is up +1.23%. Dec gold (GCZ14 -0.37%) is down -0.15%. Dec copper (HGZ14-0.03%) is up +0.26% at a 2-week high. Agriculture and livestock prices are higher. The dollar index (DXY00 -0.03%) is unch. EUR/USD (^EURUSD) is up +0.02%. USD/JPY (^USDJPY) is down -0.06%. Dec T-note prices (ZNZ14 -0.04%) are down -2.5 ticks.
Japan Sep industrial production rose +2.7% m/m and +0.6% y/y, stronger than expectations of +2.2% m/m and -0.1% y/y with the +2.7% m/m gain the biggest monthly increase in 8 months.
UK Sep net consumer credit rose +0.9 billion pounds, more than expectations of +0.8 billion pounds.
UK Sep mortgage approvals increased by 61,300, less than expectations of 62,000.
UK Sep M4 money supply fell -0.7% m/m, the biggest decline in 6 months. On a year-over-year basis Sep M4 money supply fell -2.5% y/y, the sixth straight y/y decline and the largest annual decrease in 22 months.
U.S. STOCK PREVIEW
The markets are unanimously expecting the FOMC at its 2-day meeting that ends today to end QE3 with a final $15 billion cut. Â The Treasury today will sell $15 billion of 2-year floating rate notes and $35 billion of 5-year T-notes. Â Equity conferences during the remainder of this week include: Â GTEC (Government Technology Exhibition & Conference) 2014 on Tue-Thu.
