OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 +0.74%) this morning are up +0.67% at a 1-week high and European stocks are up +1.61% as Apple rose 2% in pre-market trading after it reported stronger-than-expected Q4 earnings results late yesterday. Another supportive factor for stocks was strength in the Chinese economy after Q3 China GDP grew more than expected. Asian stocks closed mixed: Japan -2.03%, Hong Kong +0.08%, China -0.87%, Taiwan -0.10%, Australia +0.11%, Singapore +0.68%, South Korea -0.99%, India +0.55%. Chinese stocks closed lower after the stronger-than-expected China Q3 GDP dampened speculation the government will boost economic stimulus measures. Commodity prices are mixed. Nov crude oil (CLX14+0.27%) is up +0.58%. Nov gasoline (RBX14 +0.52%) is up +0.57%. Dec gold (GCZ14 +0.38%) is up +0.32% at a 1-1/4 month high on expectations the Fed may push back interest rate increases. Dec copper (HGZ14 +0.64%) is up +0.30%. Agriculture and livestock prices are mostly higher. The dollar index (DXY00 +0.27%) is up +0.23%. EUR/USD (^EURUSD) is down -0.35%. USD/JPY (^USDJPY) is down -0.06%. Dec T-note prices (ZNZ14 -0.12%) are down -8.5 ticks.
China Q3 GDP rose +1.9% q/q and +7.3% y/y, stronger than expectations of +1.8% q/q and +7.2% y/y. Despite beating expectations, the +7.3% y/y increase was the slowest pace of expansion in 5-1/2 years.
China Sep industrial production rose +8.0% y/y, better than expectations of +7.5% y/y.
China Sep retail sales climbed +11.6% y/y, less than expectations of +11.7% y/y and the slowest pace of growth in 3-1/2 years.
China Sep fixed assets investment (ex-rural households) rose +16.1% year-to-date y/y, less than expectations of +16.3% year-to-date y/y and the slowest pace of increase in 12-3/4 years.
UK Sep public sector net borrowing rose +11.1 billion pounds, more than expectations of +10.1 billion pounds.
Japan Aug all-industry activity index fell -0.1% m/m, a smaller decline than expectations of -0.4% m/m, but still the third consecutive monthly drop.
