December E-mini S&Ps (ESZ15 -0.02%) are down -0.05% and European stocks are down -0.53% ahead of the release of U.S. Oct payrolls that may provide a clue as to whether the U.S. economy is ready for an interest rate increase. Losses in European stocks accelerated after German Sep industrial production unexpectedly declined at the fastest pace in 13 months. Asian stocks settled mixed: Japan +0.78%, Hong Kong -0.80%, China +1.91%, Taiwan -1.77%, Australia +0.42%, Singapore -0.44%, South Korea -0.61%, India -0.15%. China’s Shanghai Composite climbed to a 2-1/2 month high as brokerage stocks rallied on speculation China will lift a freeze on initial public offerings by year-end, which the China Securities Regulatory Commission confirmed after the market close. Japan’s Nikkei Stock Index rose to a 2-1/2 month high, led by gains in exporters, on the prospects of improved earnings as the yen fell to near a 2-1/2 month low against the dollar.

The dollar index (DXY00 +0.17%) is up +0.16% at a 2-3/4 month high. EUR/USD (^EURUSD) is down -0.07%. USD/JPY (^USDJPY) is up +0.14%.

Dec T-note prices (ZNZ15 +0.06%) are up +4.5 ticks.

ECB Executive Board member Mersch said “monetary policy will remain accommodative for an extended period of time and the ECB will also ensure that inflation returns back towards our objective.”

German Sep industrial production unexpectedly fell -1.1% m/m, weaker than expectations of +0.5% m/m and the largest decline in 13 months.


Key U.S. news today includes: (1) Oct non-farm payrolls (expected +182,000, Sep +142,000) and the Oct unemployment rate (expected -0.1 to 5.0%, Sep 5.1%), (2) St. Louis Fed President James Bullard’s speech on U.S. monetary policy and the economic outlook to the St. Louis Regional Chamber’s Financial Forum, (3) Sep consumer credit (expected +$18.000 billion, Aug +$16.018 billion), and (4) Fed Governor Lael Brainard appearance as a panelist on an economic forum on “Policy Lessons and the Future of Unconventional Monetary Policy” at a conference hosted by the IMF.

Print Friendly, PDF & Email