OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 +0.01%) this morning are up +0.04% and European stocks are up +0.63% on signs that China is expanding stimulus to promote economic growth after a government official familiar with the matter said the PBOC is injecting 500 billion yuan ($81 billion) into China’s five biggest banks. Another positive for European stocks was the larger-than-expected drop in the UK unemployment rate to a 6-year low of 6.2%. Asian stocks closed mixed: Japan -0.14%, Hong Kong +1.00%, China +0.53%, Taiwan +0.68%, Australia -0.70%, Singapore +0.73%, South Korea +0.98%, India +0.52%. China’s Shanghai Stock Index recovered from a 1-1/2 week low and closed higher as bank stocks rallied after an unnamed official said that the PBOC will provide a liquidity infusion and funnel 100 billion yuan into each of China’s five biggest banks for a 3-month period. Commodity prices are mixed. Oct crude oil (CLV14 -0.38%) is down -0.08%. Oct gasoline (RBV14 +0.19%) is up +0.30%. Dec gold (GCZ14 +0.06%) is up +0.10%. Dec copper (HGZ14 -0.71%) is down -0.54%. Agriculture and livestock prices are mixed. The dollar index (DXY00 +0.02%) is up +0.02%. EUR/USD (^EURUSD) is down -0.06%. USD/JPY (^USDJPY) is up +0.19%. Dec T-note prices (ZNZ14 +0.06%) are up +4.5 ticks ahead of the outcome of the 2-day FOMC meeting later today.
UK Aug jobless claims fell -37,200, a larger decrease than expectations of -30,000. The Aug claimant count rate fell -0.1 to 2.9%, right on expectations and the lowest in 6 years.
The UK ILO unemployment rate fell -0.2 to 6.2% in the three months through Jul, a bigger decline than expectations of -0.1 to 6.3% and the lowest in 5-3/4 years.
The Eurozone Aug CPI was revised upward to +0.4% y/y from the originally reported +0.3% y/y. The Aug core CPI was left unrevised at +0.9% y/y.
Eurozone Aug new car registrations rose +2.1% y/y, the twelfth consecutive monthly increase.
