OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 -0.42%) this morning are down -0.45% after the U.S. Senate suspended voting on the tax bill until today after a compromise to win a majority collapsed. Also, the U.S. faces a partial government shutdown next Friday if Congress can’t agree on a spending bill by then. European stocks are down -0.86% at a 2-week low led by a slump in technology stocks. Asian stocks settled mixed: Japan +0.41%, Hong Kong -0.35%, China +0.01%, Taiwan +0.38%, Australia +0.33%, Singapore +0.47%, South Korea -0.14%, India -0.95%. The Shanghai Composite closed little changed after a gauge of Chinese manufacturing activity last month slipped to a 5-month low. Japan’s Nikkei Stock Index climbed to a 3-week high on signs of strength in the Japanese economy after Japan Q3 capital spending rose more than expected and after the Oct job-to-applicant ratio rose to a 43-4/4 year high.

The dollar index (DXY00 -0.02%) is down -0.05%. EUR/USD (^EURUSD) is down -0.07%. USD/JPY (^USDJPY) is down -0.10%.

Mar 10-year T-note prices (ZNH18 +0.23%) are up +10 ticks as the decline in stocks boosts safe-haven demand for T-notes.

The Eurozone Nov Markit manufacturing PMI was revised upward to a 17-1/2 year high of 60.1 from 60.0.

The UK Nov Markit manufacturing PMI rose +1.6 to a 3-3/4 year high of 58.2, stronger than expectations of +0.2 to 56.5.

The China Nov Caixin (flash) manufacturing PMI fell -0.2 to a 5-month low of 50.8, weaker than expectations of -0.1 to 50.9.

Japan Q3 capital spending rose +4.2% y/y, stronger than expectations of +3.2% y/y. Q3 capital spending ex-software rose +4.3% y/y, stronger than expectations of +3.1% y/y.

The Japan Oct jobless rate was unch at 2.8% right on expectations. The Oct job-to-applicant ratio rose +0.03 to a 43-3/4 year high of 1.55, stronger than expectations of unch at 1.52.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) St. Louis Fed President James Bullard (non-voter) speaks about the U.S> economic outlook and monetary policy at the Clinton Presidential Library in Little Rock, AR, (2) Dallas Fed President Robert Kaplan (voter) speaks in a moderated Q&A at a Border Economic Development and Entrepreneurship Symposium in McAllen, TX, (3) revised Nov Markit U.S. manufacturing PMI (expected +0.2 to 54.0, prelim-Nov -0.8 to 53.6), (4) Nov ISM manufacturing index (expected -0.4 to 58.3, Oct -2.1 to 58.7), (5) Oct construction spending (expected +0.5%, Sep +0.3% m/m), (6) Philadelphia Fed President Patrick Harker speaks on the topic of inclusive economic growth at a forum sponsored by the Philadelphia Fed, (7) Nov total vehicle sales (expected 17.50 million, Oct 17.98 million).