OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 +0.14%) this morning are down -0.01% and European stocks are down -0.39% ahead of the outcome of today’s ECB meeting and the press conference by ECB President Draghi soon after. European stocks may be disappointed if Draghi fails to offer insight into the size and scope of its expected purchases of asset-backed securities (ABS). Greek sovereign debt rallied sharply Wednesday after the Financial Times reported that the ECB will propose that existing requirements on the quality of assets accepted are relaxed to allow purchases of some Greek and Cypriot ABS. Russia’s Micex Stock Index tumbled to a 1-1/2 month low after the IMF cut its Russian 2015 GDP forecast in half to +0.5% from +1.0% amid the fallout from the conflict in Ukraine and a weaker ruble. Asian stocks closed lower: Japan -2.61%, Hong Kong, China and India closed for holiday, Taiwan -0.17%, Australia -0.68%, Singapore -1.08%, South Korea -1.09%. Japan’s Nikkei Stock Index fell sharply to a 3-1/2 week low on carry-over weakness from Wednesday’s slide in U.S. stocks along with a decline in Japanese exporters after the yen rose to a 1-week high against the dollar. Commodity prices are mostly lower. Nov crude oil (CLX14 -1.80%) is down -2.22% at a 17-month low after Saudi Arabia reduced the price of its Arab Light crude by $1 a barrel, suggesting that Saudi Arabia does not plan on cutting production and instead wants to protect its share of OPEC output. Nov gasoline (RBX14 -1.87%) is down -2.05% at a 3-3/4 year low. Dec gold (GCZ14 -0.17%) is down -0.10%. Dec copper (HGZ14 -0.71%) is down -0.56%. Agriculture and livestock prices are mixed with Dec live cattle up +0.45% at a contract high. The dollar index (DXY00 -0.26%) is down -0.27%. EUR/USD (^EURUSD) is up +0.12%. USD/JPY (^USDJPY) is down -0.28% at a 1-week low. Dec T-note prices (ZNZ14 -0.01%) are up +0.5 of a tick at a 1-month high.
