OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 -0.38%) this morning are down another -0.47% as concerns continue about slowing world economic growth. The EuroStoxx 50 Index this morning is down sharply by -1.42%. Asian stocks today closed lower across the board: Japan -1.15%, Hong Kong -1.90%, China CSI 300 index -0.61%, Australia -2.05%, Singapore -1.09%, South Korea -1.33%, India -1.20%, Turkey -1.24%. Dec 10-year T-note prices (ZNZ14+0.17%) this morning are up 7.5 ticks. The dollar index (DXY00 +0.29%) is up +0.16% today on safe-haven demand, while EUR/USD (^EURUSD) is down-0.16% and USD/JPY (^USDJPY) is down -0.15%.
Commodity prices are down another -0.30% today on expectations for weaker global demand. Nov WTI crude oil (CLX14 -1.12%) is sharply lower by-1.34% and Nov Brent crude is down -0.79%. Nov gasoline (RBX14 -1.27%) is down -1.38%. Dec gold (GCZ14 -0.15%) is down -0.24%, Dec silver (SIZ14-0.62%) is down -0.79%, and Dec copper (HGZ14 -0.99%) is down -1.07%. Grain and lean hog prices are lower while cattle is unchanged. Softs are mixed…
Oil prices are sharply lower again today as concern continues about a glut of oil and OPEC’s apparent unwillingness as yet to cut production. Iran yesterday matched Saudi Arabia’s discounts to customers in the crude oil market, indicating a price war among OPEC members. Kuwait and Iraq will release their selling prices next week.
The VIX index, which measures expected S&P 500 implied volatility, rose to 18.8% yesterday from as low as 12% in mid-September due to this week’s sharp sell-off in stocks.
Today is a big day for Fedspeak with comments from Plosser, George, Fisher and Lacker.
South Korea today returned fire to what appeared to be heavy machine gun fire from North Korea across the border, the second time the two countries have exchanged fire this week. This comes as North Korean leader Kim Jong Un did not show up for today’s key 69th anniversary of the founding of the ruling Workers’ party. Kim has not been seen in public since Sep 3, sparking a variety of rumors about whether he is ill.
