OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 -1.19%) this morning are down -1.31% and European stocks are down -2.04% at a 13-1/4 month low as global stocks continue their downside correction. Greek government bonds plunged as the 10-year Greek bond yield surged 81 bp to a 9-month high of 8.66% on concern the government won’t be able to fund itself adequately if it sticks to plans to leave an international bailout program early. Spain’s 10-year government bond yield jumped 23 bp to a 1-month high of 2.34% after it sold 3.2 billion euros of 10-year and 15-year debt, less than a target of 3.5 billion euros. The S&P 500 had recovered from a 6-month low late yesterday and traded higher early in the overnight electronic session after Fed Chair Yellen told a private meeting of the Group of 30 that “she expressed confidence” in the U.S. economic outlook and the economy looked to be on track to achieve growth of around 2%, according to two people familiar with her comments. Asian stocks closed mostly lower: Japan -2.22%, Hong Kong -1.03%, China-0.79%, Taiwan -0.25%, Australia +0.18%, Singapore -1.39%, South Korea -0.44%, India -1.33%. Japanese banks and exporters tumbled and led the overall market lower as the Nikkei Stock Index fell to a 4-1/2 month low, while China’s Shanghai Stock Index erased gains and closed lower after a gauge of new credit rose less than expected. Commodity prices are mostly lower. Nov crude oil (CLX14 -1.80%) is down -1.91%. Nov gasoline (RBX14 -0.21%) is down -0.29%. Dec gold (GCZ14 -0.14%) is down -0.17%. Dec copper (HGZ14 -1.40%) is down -1.68% at a 7-month low on global demand concerns amid increasing supplies after LME copper inventories surged +3,025 MT to a 2-3/4 month high of 157,675 MT. Agriculture and livestock prices are mostly lower. The dollar index (DXY00 +0.06%) is up +0.14%. EUR/USD (^EURUSD) is down -0.76%. USD/JPY (^USDJPY) is down -0.26% as the global stock market rout boosts the safe-haven demand of the yen. Dec T-note prices (ZNZ14 +0.53%) are up +21.5 ticks.
