OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 -0.05%) this morning are down -0.01% and European stocks are up +0.41%. European stocks are higher on optimism that a slump in the euro to a 1-3/4 year low against the dollar will increase the competitiveness of European companies in the global market and boost profits of European exporters. Asian stocks closed mixed: Japan +1.26%, Hong Kong -0.64%, China -0.20%, Taiwan -0.96%, Australia +0.12%, Singapore -0.06%, South Korea -0.16%, India -1.03%. Japan’s Nikkei Stock Index surged to a 6-3/4 year high as exporters rallied on a weaker yen and after investors bought dividend paying stocks as more than 1,000 companies go ex-dividend tomorrow. Commodity prices are mostly lower. Nov crude oil (CLX14 +0.26%) is down -0.11%. Nov gasoline (RBX14 +1.29%) is up +0.72%. Dec gold (GCZ14 -0.72%) is down -0.83% at an 8-3/4 month low as the dollar index soars to a 4-year high. Dec copper (HGZ14 -0.39%) is down -0.72% amid speculation supplies might increase as stockpiles tied up in so-called commodity financing deals in China come onto the market after Chinese investigators uncovered almost $10 billion in fraudulent trades. Agriculture and livestock prices are mixed. The dollar index (DXY00 +0.46%) is up +0.41% at a 4-year high. EUR/USD (^EURUSD) is down -0.45% at a 1-3/4 year low after ECB President Draghi told a Lithuanian newspaper that the ECB stands ready to use “additional unconventional instruments” to revive growth in the Eurozone. USD/JPY (^USDJPY) is up +0.19%. Dec T-note prices (ZNZ14 +0.11%) are up +3.5 ticks.
ECB President Draghi told the Lithuanian business newspaper Verslo Zinios that the Eurozone recovery “seems to have lost momentum recently” and that “clear risks” to growth include heightened geopolitical tensions and insufficient structural reforms. He added the ECB stands ready to use “additional unconventional instruments” to further address the risk of a prolonged period of low inflation.
