Overnight Markets And News

Dec E-mini S&Ps (ESZ18 -0.20%) this morning are down -0.14% and European stocks are down -0.33% due to the prospects of a prolonged trade war between China and the U.S. after China called off planned trade talks. After the U.S. implemented its 10% tariff on $200 billion of Chinese goods as of 12:01 today, China canceled trade talks that were scheduled with the U.S. for this week and said negotiations “cannot be carried out under the threat of tariffs.” Losses in the overall market were contained as energy producers gained as Nov WTI crude oil (CLX18 +1.70%) jumped +1.65% to a 2-1/2 month high after OPEC said it will only boost production if customers ask for it. After meeting with fellow oil ministers on Sunday, Saudi Energy Minister Khalid Al-Falih said: “Our plan is to meet demand and that the reason Saudi Arabia does not increase oil production more is because our customers are receiving all of the barrels they want.” Also, compliance among OPEC and non-OPEC oil producers with their production cuts increased to 129% in August from 109% in July. Asian stocks settled mostly lower: Japan, China, Taiwan, and South Korea closed for holiday, Hong Kong -1.62%, Australia -0.12%, Singapore +0.05%, India -1.46%.

The dollar index (DXY00 -0.11%) is down -0.14%. EUR/USD (^EURUSD +0.15%) is up +0.15% after ECB Governing Council member Nowotny said the ECB should normalize monetary policy quicker than planned. USD/JPY (^USDJPY+0.05%) is up +0.02%.

Dec 10-year T-note prices (ZNZ18 -0-025) are down -2.5 ticks.

ECB Governing Council member Nowotny said the ECB is still enforcing a “crisis mode” monetary policy when Europe is currently in a very good economic situation and that policy normalization should come a bit quicker than currently planned.

The German Sep IFO business climate fell 0.2 to 103.7, stronger than expectations of -0.6 to 103.2.

UK Sep CBI trends total orders fell -8 to -1, weaker than expectations of -3 to 4.