OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 -0.12%) this morning are down -0.07% after IBM missed on Q3 revenue estimates and European stocks are down-1.28% as SAP SE dropped over 5% after it cut its full-year profit forecast and Royal Philips slid over 4% after it reported Q3 sales and profits that were weaker-than-expected. Asian stocks closed higher: Japan +3.98%, Hong Kong +0.20%, China +0.53%, Taiwan +1.77%, Australia +0.91%, Singapore +0.42%, South Korea +1.69%, India +1.23%. Japanese stocks rallied sharply after the Nikkei newspaper reported that Japan’s $1.2 trillion Government Pension Investment Fund will increase its allocation target for local stocks to about 25% from the current 12%. Chinese stocks gained after a government official said the PBOC is planning to inject about 200 billion yuan ($32.7 billion) into banks to help them prepare for year-end liquidity needs and as Communist leaders gather for a plenum that may further economic and social reforms in an attempt to spur economic growth. Commodity prices are mixed. Nov crude oil (CLX14 +0.35%) is up +0.05%. Nov gasoline (RBX14 +0.03%) is down -0.14%. Dec gold (GCZ14 +0.51%) is up +0.30%. Dec copper (HGZ14 -0.92%) is down -1.03%. Agriculture prices are lower on speculation dry weather in the Midwest sped up the pace of the U.S. harvest. The dollar index (DXY00 -0.03%) is up +0.03%. EUR/USD (^EURUSD) is up +0.20%. USD/JPY (^USDJPY) is down -0.02%. Dec T-note prices (ZNZ14 -0.07%) are down -2 ticks.
German Sep PPI was unchanged m/m and down -1.0% y/y, right on expectations. German producer prices have now held steady or fallen for 10 consecutive months and the -1.0% y/y drop was the largest year-over-year decline in 8 months.
The UK Oct Rightmove house prices rose +2.6% m/m, the largest increase in 5 months, and on an annual basis rose +7.6% y/y.
Japan Sep nationwide department store sales fell -0.7% y/y, the sixth consecutive month of year-over-year declines.
