OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ14 +0.23%) this morning are up +0.17% and European stocks are unchanged after falling back from a 2-1/4 month high as China led a rally in emerging markets on speculation a slowdown in growth will prod China into expanding stimulus. The Russian ruble held near a record low against the dollar on speculation Russia may enter its first recession since 2009 after Deputy Economy Minister Vedev said Russia 2015 GDP may contract -0.8%, weaker than previous projections of +1.2% growth. Asian stocks closed mostly higher: Japan +0.42%, Hong Kong +1.23%, China +3.69%, Taiwan -0.91%, Australia +1.41%, Singapore +0.50%, South Korea -0.07%, India -0.40%. China’s Shanghai Stock Index climbed to a 3-1/3 year high on speculation the PBOC may be preparing the markets for additional stimulus after it refrained from draining funds from the financial system today. The PBOC halted sales of repos used to withdraw funds on Nov 27 for the first time in 4 months, and refrained again today after conducting operations every Tuesday and Thursday. Japan’s Nikkei Stock Index rose to a 7-1/3 year high despite Moody’s cut to Japan’s credit rating yesterday on speculation the slide in crude oil to a 4-1/3 year low and with the plunge in the yen to a 7-1/3 year low against the dollar will boost the profits of Japanese exporters. Commodity prices are mostly lower. Jan crude oil (CLF15 -1.67%) is down -1.17%. Jan gasoline (RBF15 -1.24%) is down-0.98%. Feb gold (GCG15 -1.90%) is down -1.83%. Mar copper (HGH15 -1.10%) is down -1.35%. Agriculture prices are weaker. The dollar index (DXY00 +0.41%) is up +0.34%. EUR/USD (^EURUSD) is down -0.26%. USD/JPY (^USDJPY) is up +0.46%. Mar T-note prices (ZNH15 -0.12%) are down -4.5 ticks.

Eurozone Oct PPI fell -0.4% m/m, more than expectations of -0.3% m/m and the largest monthly decline in a year. On an annual basis, Oct PPI fell -1.3%y/y, right on expectations.