OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 -0.03%) this morning are up +0.14% and European stocks are up +0.29% after Wednesday’s dovish minutes from the Sep 16-17 FOMC meeting bolstered speculation the Fed may hold off on raising interest rates. Another positive for stocks is the nearly 3% jump in Alcoa which kicked off the start of Q3 earnings season late yesterday by reporting its highest earnings in 3 years. As expected, the BOE maintained its benchmark interest rate and kept its asset purchase target at 375 billion pounds following the conclusion of its 2-day policy meeting. Asian stocks closed mostly higher: Japan -0.75%, Hong Kong +1.17%, China +0.14%, Taiwan +0.13%, Australia +1.06%, Singapore +1.01%, South Korea closed for holiday, India +1.49%. Japan’s Nikkei Stock Index bucked the trend of rallying global stocks and tumbled to a 1-1/4 month low as exporters declined after the yen rose to a 3-week high against the dollar, which dampens exporters’ earnings prospects, while China’s Shanghai Stock Index pushed up to a 1-1/2 year high after Premier Li Keqiang said the Chinese government will use “targeted measures” to support economic growth. Commodity prices are mixed. Nov crude oil (CLX14 -0.10%) is up +0.07%. Nov gasoline (RBX14 -0.83%) is down -0.69%. Dec gold (GCZ14 +1.95%) is up +1.94% at a 1-1/2 week high as the dollar slides. Dec copper (HGZ14 +1.33%) is up +1.18%. Agriculture and livestock prices are mixed with Dec live cattle up +0.60% at a contract high. The dollar index (DXY00 -0.30%) is down -0.26% at a 2-week low after yesterday’s FOMC minutes pushed backed expectations on when the Fed will start to raise interest rates. EUR/USD (^EURUSD) is up +0.24% at a 2-week high. USD/JPY (^USDJPY) is down -0.42% at a 3-week low. Dec T-note prices (ZNZ14 +0.30%) are up 11.5 ticks at a new contract high as the 10-year T-note yield tumbled to a 15-month low of 2.293%.
