OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 +0.54%) this morning are up +0.51% and European stocks are up +0.95% ahead of the start of the 2-day FOMC meeting where the Fed is expected to announce an end to its QE3 bond purchase program. Sweden’s Riksbank unexpectedly cut its main interest rate to zero and said it won’t raise interest rates until “inflation clearly picks up” in mid-2016 in an attempt to jolt the Swedish economy out of a deflationary spiral. The Russian ruble dropped to a record low of 42.597 per dollar on concern the Russian central bank will move to a free float after more than $20 billion of currency interventions this month failed to stem the ruble’s decline. Asian stocks closed mixed: Japan -0.38%, Hong Kong +1.63%, China +2.02%, Taiwan +1.69%, Australia -0.12%, Singapore -0.45%, South Korea -0.24%, India +0.48%. Japanese stocks closed lower after stronger-than-expected Japan Sep retail sales dampened speculation the BOJ will expand stimulus measures when it meets for a 2-day meeting on Thursday. Chinese stocks closed higher after China Sep industrial profits rose from the prior month. Commodity prices are mostly higher. Dec crude oil (CLZ14 +0.60%) is up +0.17%. Dec gasoline (RBZ14 +0.62%) is up +0.24%. Dec gold (GCZ14 -0.12%) is down -0.11%. Dec copper (HGZ14 +0.47%) is up +0.44% at a 1-1/2 week high on the threat of a strike by workers at Freeport-McMoRan’s Grasberg copper mine in Indonesia, the third-largest in the world. Agriculture and livestock prices are mostly higher with Dec corn up +1,86% at a 2-month high and Nov soybeans up +1.69% at a 1-3/4 month high on carry-over support from a rally in soybean meal prices to a 4-month high as near-record beef and pork prices boost demand for animal feed to fatten hogs and cattle. The dollar index (DXY00 +0.10%) is up +0.15%. EUR/USD (^EURUSD) is down -0.02%. USD/JPY (^USDJPY) is up +0.25%. Dec T-note prices (ZNZ14 -0.15%) are down-5 ticks.
