OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 -0.38%) this morning are down -0.40% and European stocks are down -1.12% on German economic concerns after German Aug industrial production fell more than expected by the most in 5-1/2 years. European airlines and travel companies are also lower on concern over the spread of the Ebola virus after a Spanish nurse was confirmed to have become infected with the virus, the first person to contract Ebola in Europe. Asian stocks closed mixed: Japan -0.67%, Hong Kong +0.46%, China, closed for holiday, Taiwan -0.60%, Australia -0.16%, Singapore -0.28%, South Korea +0.30%, India -1.11%. Japanese stocks fell after the BOJ refrained from additional easing measures following its 2-day policy meeting and said that “some weakness particularly on the production side has been observed.” Hong Kong’s Hang Seng Index rose for a second day as tensions eased in the city as formal talks between protesters and Hong Kong officials began. Commodity prices are mixed. Nov crude oil (CLX14 -0.10%) is down-0.27%. Nov gasoline (RBX14 -0.56%) is down -0.65%. Dec gold (GCZ14 -0.07%) is down -0.13%. Dec copper (HGZ14 -0.35%) is down -0.31%. Agriculture and livestock prices are mixed. The dollar index (DXY00 +0.10%) is up +0.14%. EUR/USD (^EURUSD) is down -0.52%. USD/JPY (^USDJPY) is down -0.10%. Dec T-note prices (ZNZ14 +0.09%) are up +4 ticks.
German Aug industrial production fell -4.0% m/m, a larger drop than expectations of -1.5% m/m and the biggest monthly decline in 5-1/2 years. On an annual basis. Aug industrial production fell -2.8% y/y, a faster pace of decline than expectations of -0.5% y/y.
Kansas City Fed President George said that “inflation looks to be relatively tame” though “my colleagues and I must remain vigilant on the front,” and that divergent central bank policies could have the effect of keeping longer-term interest rates lower.
