OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 +0.34%) this morning are up +0.30% and European stocks are up +0.94% as slower-than-expected Eurozone inflation bolstered speculation the ECB will boost stimulus. Other positives for European stocks included the upward revision to UK Q2 GDP and the surge in German Aug retail sales by the most in 3 years. Asian stocks closed mixed: Japan -0.84%, Hong Kong -1.28%, China +0.13%, Taiwan +0.07%, Australia +0.54%, Singapore -0.39%, South Korea -0.46%, India +0.13%. Japanese stocks fell after Japan Aug industrial output unexpectedly declined, while Chinese shares gained after the PBOC loosened property policies for the first time since 2008 in an attempt to boost the housing market. Hong Kong’s Hang Seng Stock Index tumbled to a 3-month low as pro-democracy protesters continued to block roads in central Hong Kong in the fifth day of protests. Commodity prices are mixed. Nov crude oil (CLX14 -0.12%) is down -0.04%. Nov gasoline (RBX14 +0.05%) is up +0.12%. Dec gold (GCZ14 -1.07%) is down -0.86%. Dec copper (HGZ14 -1.19%) is down -0.67%. Agriculture and livestock prices are mixed. The dollar index (DXY00 +0.69%) is up +0.61% at a 4-1/4 year high. EUR/USD (^EURUSD) is down -0.88% at a 2-year low as weak Eurozone inflation data fuels speculation the ECB may expand stimulus to avert deflation. USD/JPY (^USDJPY) is up +0.22%. Dec T-note prices (ZNZ14 -0.14%) are down -8 ticks.
The Eurozone Sep CPI estimate rose +0.3% y/y, right on expectations and the slowest pace of increase in 4-3/4 years. Sep core CPI rose +0.7% y/y, less than expectations of +0.9% y/y and matched the slowest pace of increase since the data series began in 1997.
The Eurozone Aug unemployment rate remained unchanged at 11.5%, right on expectations and the lowest in 2 years.
The German Sep unemployment change unexpectedly rose +12,000, more than expectations of -2,000. The Sep unemployment rate remained unchanged at 6.7%, right on expectations and the lowest since data for a reunified Germany began in 1991.
