OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 -0.40%) this morning are down -0.53% at a 1-month low and European stocks are down -1.34% at a 3-week low as a drop in crude oil to a 5-1/3 year low undercuts energy producers. Chinese economic concerns also weighed on stocks after Nov China industrial output grew less than expected. The plunge in oil prices has also pressured the Russian ruble which plunged to a record low of 57.974 per dollar and has now lost over 30% of its value in the last 3 weeks. Asian stocks closed mixed: Japan +0.66%, Hong Kong -0.27%, China +0.32%, Taiwan +0.16%, Australia-0.22%, Singapore +0.16%, South Korea +0.37%, India -0.91%. Chinese stocks closed higher despite weaker-than-expected China Nov industrial production on speculation the government will boost its stimulus measures, while Japanese stocks rose ahead of Sunday’s national elections in Japan where Prime Minister Abe’s LDP party is expected to win in a landslide, which will allow him to push ahead with his fiscal policies. Commodity prices are mixed. Jan crude oil (CLF15 -1.07%) is down -0.88% at a 5-1/3 year low after the IEA cut its global oil demand forecast for the fourth time in five months when it said global oil demand in 2015 will grow by 900,000 bpd, 230,000 bpd less than previously forecast, to 93.3 million bpd. Jan gasoline (RBF15+0.02%) is up +0.24%. Feb gold (GCG15 -0.24%) is down -0.16%. Mar copper (HGH15 +0.39%) is up +0.45%. Agriculture prices are higher. The dollar index (DXY00 -0.37%) is down -0.43%. EUR/USD (^EURUSD) is up +0.32%. USD/JPY (^USDJPY) is down -0.27%. Mar T-note prices (ZNH15 +0.33%) are up +15.5 ticks at a 1-1/2 week high on carry-over support from a rally in European government bonds to record highs as the 10-year German bund yield fell to an all-time low of 0.636%.
China Nov new yuan loans were 852.7 billion yuan, more than expectations of 655.0 billion yuan. Nov aggregate financing, China’s broadest measure of credit, rose +1.15 trillion yuan, more than expectations of 895.0 billion yuan and the most in 5 months.
