OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 -0.89%) are down -0.71% and European stocks are down -2.39% on concern over global growth after the Fed refrained from raising interest rates Thursday due to “recent global economic and financial developments that may restrain economic activity.” Global government bonds rose as the 10-year T-note yield fell to a 2-week low, while Dec gold (GCZ15 +1.60%) climbed +1.77% to a 2-week high. Emerging markets rallied on the prospects that interest rates stay lower for longer while Asian stocks closed mixed: Japan -1.96%, Hong Kong +0.30%, China +0.38%, Taiwan +0.20%, Australia +0.46%, Singapore -0.56%, South Korea +0.76%, India +0.98%. China’s Shanghai Composite closed higher as property stocks rose after data showed China Aug home prices rose in more cities than the prior month.

The dollar index (DXY00 -0.31%) is down -0.32% at a 3-week low. EUR/USD (^EURUSD) is down -0.08% as it fell back from a 3-week high after dovish comments from ECB Executive Board member Coeure undercut the euro. USD/JPY (^USDJPY) is down -0.69% at a 1-week low as the slide in stocks boosts the safe-haven demand for the yen.

Dec T-note prices (ZNZ15 +0.41%) are up +18.5 ticks at a 2-week high.

ECB Executive Board member Coeure said that the euro has appreciated fairly significantly in recent weeks and that the outlook for global growth has clearly weakened. Coeure also said that risks to Eurozone economic growth are on the downside and the ECB is ready to extend QE beyond Sep 2016 if needed.

China Aug new home prices rose in 35 out of the 70 cities tracked by the government, more than 31 cities in July. Home prices in Aug dropped in 25 cities, fewer than 29 cities in July.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Aug leading indicators (expected +0.2%, Jul -0.2%), (2) Q2 household net worth change (Q1 +$1.629 trillion), and (3) the Treasury’s auction of $13 billion of 10-year TIPS.