OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 +0.24%) rebounded upward from initial losses last night and are now trading slightly higher with a rally in European stocks this morning. The EuroStoxx 50 Index is up +0.51% this morning. Concerns about weak global economic growth continue but bullish factors this morning include the +15.3% y/y increase in Chinese Sep exports and supportive comments from Fed Vice Chair Stanley Fischer that the Fed will delay a rate hike if weak foreign growth hurts the U.S. economy. Asian stocks today closed mostly lower: Hong Kong +0.24%, China CSI 300 index -0.48%, Taiwan -2.84%, Australia -0.63%, Singapore -0.67%, South Korea -0.36%, India +0.33%, Turkey +1.63%. The Japanese markets were closed today for a public holiday. Dec 10-year T-note prices (ZNZ14 +0.31%) are sharply higher by +13 ticks. The dollar index (DXY00 -0.52%) is down -0.47% on technical selling while EUR/USD (^EURUSD) is up +0.48% and USD/JPY (^USDJPY) is down -0.27%.
Commodity prices are slightly higher by +0.10% this morning. Nov WTI (CLX14 -1.55%) crude oil is down -1.43% and Nov gasoline (RBX14 -1.75%) is down -1.60%. Dec gold (GCZ14 +0.52%) is up +0.46%, Dec silver (SIZ14 +0.82%) is up +0.76%, and Dec copper (HGZ14 +0.25%) is up +0.12%. Grain prices are narrowly mixed and softs are trading higher.
China’s Sep exports rose by +15.3% y/y, stronger than market expectations of +12.0% and Aug’s report of +9.4%. Chinese imports rose by +7.0% y/y, stronger than market expectations of -2.0% y/y and Aug’s report of -2.4% y/y. China’s Sep trade surplus of $30.94 billion was a little below market expectations of $41.1 billion and was down from Aug’s surplus of $49.8 billion.
Fed Vice Chairman Stanley Fischer said at a weekend IMF meeting that “If foreign growth is weaker than anticipated, the consequences for the U.S. economy could lead the Fed to remove accommodation more slowly than otherwise.â€
