OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 +0.21%) this morning are up +0.20% on carry-over support from the passage of tax reform by U.S. legislators on Wednesday that President Trump said he will sign into law on Jan 3. European stocks are down -0.07%at a 2-week low after a gauge of UK Dec consumer confidence unexpectedly fell to a 4-year low as Brexit concerns weighed on UK consumers, and as European government bond yields rose after the 10-year bund yield climbed for a fourth day to a 1-3/4 month high of 0.430%. Asian stocks settled mostly lower: Japan -0.11%, Hong Kong +0.45%, China +0.38%, Taiwan -0.15%, Australia -0.25%, Singapore -0.36%, South Korea -1.86%, India -0.06%. Chinese stocks were a bright spot for Asian markets as they closed higher and garnered support from a report from the Xinhua news agency that said the PBOC will keep monetary policy “prudent and neutral’ next year.

The dollar index (DXY00 +0.16%) is up +0.11%. EUR/USD (^EURUSD) is down -0.03%. USD/JPY (^USDJPY) is up +0.12% at a 1-week high after the BOJ left monetary policy unchanged.

Mar 10-year T-note prices (ZNH18 +0.10%) are up +3.5 ticks.

The UK Dec GfK consumer confidence unexpectedly fell -1 to a 4-year low of -13, weaker than expectations of no change at 12.

UK Nov public sector net borrowing increased by +8.1 billion pounds, weaker than expectations of +8.3 billion pounds, but still the most in 7 months.

The BOJ in an 8-1 vote maintained their policy rate at -0.1% and kept a target of 0% for 10-year government bond yields and BOJ Governor Kuroda said there’s no need to reconsider the current policy framework.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +8,000 to 233,000, previous -11,000 to 225,000) and continuing claims (expected +12,000 to 1.898 million, previous -27,000 to 1.886 million), (2) revised Q3 GDP (expected unrevised at +3.3% q/q annualized), (3) Nov Chicago national activity index (expected -0.15 to 0.50, Oct 0.65), (4) Dec Philadelphia Fed business outlook survey (expected -1.7 to 21.0, Nov -5.2 to 22.7), (5) USDA weekly Export Sales, (6) Oct FHFA house price index (expected +0.4% m/m, Sep +0.3% m/m), (7) Nov leading indicators (expected +0.4%, Oct +1.2%), (8) Treasury auctions $14 billion 5-year TIPS.