OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 -0.75%) this morning are down -0.20% and European stocks are down -0.87% on global economic concerns. China reported the smallest increase in consumer prices in 4-1/2 years last month and today’s U.S. Sep retail sales data is expected to show the first decline since Jan. Asian stocks closed mostly higher: Japan +0.92%, Hong Kong +0.40%, China +0.71%, Taiwan -1.29%, Australia +0.73%, Singapore +0.14%, South Korea -0.25%, India closed for holiday. China’s Shanghai Stock Index closed higher after weaker-than-expected inflation data fueled speculation the government may introduce additional stimulus measures, and Japanese stocks closed higher, led by strength in exporters, after the yen weakened against the dollar. Commodity prices are mostly lower. Nov crude oil (CLX14 -1.28%) is down -1.50% at a 2-1/3 year low after the IEA cut its 2014 global demand forecast along with speculation OPEC will refrain from cutting production to ease a supply glut. Nov gasoline (RBX14 -1.40%) is down -1.72% at a 3-3/4 year low. Dec gold (GCZ14 -0.55%) is down -0.80%. Dec copper (HGZ14 -0.86%) is down -0.65%. Agriculture and livestock prices are mostly lower. The dollar index (DXY00 +0.05%) is up +0.16% at a 1-week high. EUR/USD (^EURUSD) is down -0.09%. USD/JPY (^USDJPY) is up +0.14%. Dec T-note prices (ZNZ14 +0.33%) are up +0.5 of a tick on carry-over support from a rally in German bunds which climbed to a record high as the 10-year bund yield fell to an all-time low of 0.810%.
China Sep CPI rose +1.6% y/y, less than expectations of +1.7% y/y and the smallest pace of increase in 4-1/2 years. Sep PPI fell -1.8% y/y, a larger drop than expectations of -1.6% y/y and the fastest pace of decrease in 5 months.
UK Sep jobless claims fell -18,600, less than expectations of -35,000. The Sep claimant count rate dipped -0.1 to 2.8%, right on expectations and the lowest in 6 years.
The UK Aug ILO unemployment rate fell -0.2 to 6.0% for the 3-months through Aug, a bigger decline than expectations of -0.1 to 6.1% and the lowest in 5-3/4 years. Aug avg weekly earnings rose +0.7% 3-mo avg, right on expectations, and rose +0.9% ex-bonus 3-mo avg, higher than expectations of +0.8% 3-mo avg.
