Overnight Markets And News

Dec E-mini S&Ps (ESZ18 +0.59%) this morning are up +0.59% at a 1-week high and European stocks are up +0.50% on reduced global trade tensions after American and Canadian representatives announced a new trade deal to be known as the U.S.-Mexico-Canada Agreement or USMCA, which made modest revisions to the old Nafta framework. European stocks also received a boost after the Eurozone Aug unemployment rate fell -0.1 to a 9-3/4 year low of 8.1%. Asian stocks settled mixed: Japan +0.52%, Hong Kong and China closed for holidays, Taiwan +0.41%, Australia -0.57%, Singapore -0.05%, South Korea -0.11%, India +0.83%. Most Asian bourses declined on economic concerns after an earthquake and tsunami hit the island of Sulawesi in Indonesia and after a gauge of Chinese manufacturing activity fell to a 7-month low. Japan’s Nikkei Stock Index bucked the negative trend and rallied to a 26-3/4 year high as strength in exporters led the overall market higher, buoyed by positive sentiment from the new trade deal between the U.S., Canada and Mexico, along with the rally in USD/JPY to a 10-3/4 month high. The yen was undercut after the Japan Q3 Tankan large manufacturing business conditions unexpectedly declined.

The dollar index (DXY00 -0.01%) is down -0.01%. EUR/USD (^EURUSD +0.03%) is up +0.08%. USD/JPY (^USDJPY +0.26%) is up +0.24% to a 10-3/4 month high.

Dec 10-year T-note prices (ZNZ18 -0-060) are down -6.5 ticks.

The Eurozone Aug unemployment rate fell -0.1 to a 9-3/4 year low of 8.1%, right on expectations.

The Eurozone Sep Markit manufacturing PMI was revised downward to 53.2 from the originally reported 53.3, the slowest pace of growth in 2 years.

German Aug retail sales unexpectedly fell -0.1% m/m, weaker than expectations of +0.5% m/m.

The UK Sep Markit manufacturing PMI unexpectedly rose +0.8 to 53.8, stronger than expectations of -0.3 to 52.5

The China Sep manufacturing PMI fell -0.5 to 50.8, weaker than expectations of -0.1 to 51.2 and the slowest pace of growth in 7 months. The Sep non-manufacturing PMI unexpectedly rose +0.7 to 54.9, stronger than expectations of -0.2 to 54.0.