OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 -0.02%) this morning are down slightly by -0.05%. Losses in the overall market were limited with strength in energy stocks as Dec WTI crude oil climbs +0.54% to a new 2-1/3 year high. Crude oil rose on speculation that Saudi Arabia is more likely to back extending cuts in crude production following this weekend’s anti-corruption purge by Saudi Crown Prince Mohammed bin Salman who had security forces arrest princes, ministers and former top officials in a sweeping anti-corruption drive. European stocks are down -0.33% as they follow declines in U.S. stock indexes, although losses were limited after German Sep factory orders rose more than expected and after Eurozone Nov Sentix investor confidence climbed to a 10-1/4 year high. Asian stocks settled mixed: Japan +0.04%, Hong Kong -0.02%, China +0.49%, Taiwan -0.13%, Australia -0.10%, Singapore -0.01%, South Korea -0.42%, India +0.14%. Japan’s Nikkei Stock Index posted a fresh 21-1/3 year high as exporter stocks rallied after USD/JPY rose to a 7-1/2 month high.

The dollar index (DXY00 +0.08%) is unchanged. EUR/USD (^EURUSD) is down -0.10% at a 1-week low as fall in the German bund yield to a 1-3/4 month low undercut the euro’s interest rate differentials. USD/JPY (^USDJPY) is unchanged after it rose to a 7-1/2 month high in overnight trade after BOJ Governor Kuroda stressed the need for continued easing from the BOJ when he said we are “still a long way” from achieving our 2% inflation target.

Dec 10-year T-note prices (ZNZ17 +0.12%) are up +7.5 ticks on carry-over support from a rally in German 10-year bunds to a 1-3/4 month high.

ECB Executive Board member Praet said that “a substantial amount of monetary accommodation continues to be necessary to secure the gradual convergence of inflation towards our inflation aim.”

The Eurozone Nov Sentix investor confidence rose +4.3 to 34.0, stronger than expectations of +1.3 to 31.0 and the highest in 10-1/4 years.