Overnight Markets And News

Dec E-mini S&Ps (ESZ18 -0.54%) this morning are down -0.56% on weakness in technology stocks with Texas Instruments down 6% in pre-market trading after it forecast a slowdown in revenue in Q4. European stocks are up +0.79% on strength in exporters as EUR/USD falls -0.57% to a 2-month low, which boosts the earnings prospects for European exporters. EUR/USD declined, and the German 10-year bund yield tumbled to a 1-1/2 month low of 0.389% on signs of weakness n European manufacturing activity after the Eurozone Oct Markit manufacturing PMI fell -1.1 to 52.1, the slowest pace of expansion in 2-years. GBP/USD slid -0.52% to a 6-week low as UK Prime Minister May faces another showdown with her party over her Brexit plans later today. Asian stocks settled mixed: Japan +0.37%, Hong Kong -0.38%, China +0.33%, Taiwan -0.16%, Australia -0.24%, Singapore +0.02%, South Korea -0.43%, India +0.55%. Japan’s Nikkei Stock Index recovered from a 2-1/4 month low and closed higher on signs of strength in Japanese manufacturing activity after the Japan Oct Nikkei manufacturing PMI rose +0.6 to a 6-month high of 53.1.

The dollar index (DXY00 +0.47%) is up +0.41% at a 2-month high. EUR/USD (^EURUSD -0.61%) is down -0.57% at a 2-month low on the weaker-than-expected Eurozone Oct Markit manufacturing PMI. USD/JPY (^USDJPY +0.21%) is up +0.15%.

Dec 10-year T-note prices (ZNZ18 +0-045) are up +4.5 ticks.

Eurozone Oct Markit manufacturing PMI fell -1.1 to 52.1, weaker than expectations of -0.2 to 53.0 and the slowest pace of expansion in 2-years. The Oct Markit composite PMI fell -1.4 to a 2-year low of 52.7, weaker than expectations of -0.2 to 53.9.

The German Oct Markit/BME manufacturing PMI fell -1.4 to a nearly 2-1/2 year low of 52.3, weaker than expectations of -0.3 to 53.4.

Japan Oct Nikkei manufacturing PMI rose +0.6 to a 6-month high of 53.1.

U.S. Stock Preview

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -7.1% to 322.1 with purchase sub-index -5.9% to 224.0 and refi sub-index -9.0% to 838.1), (2) Aug FHFA house price index (expected +0.3% m/m, Jul +0.2% m/m), (3) Oct Markit manufacturing PMI (expected -0.3 to 55.3, Sep +0.9 to 55.6), (4) Sep new home sales (expected -0.6% to 625,000, Aug +3.5% to 629,000), (5) EIA weekly Petroleum Status Report, (6) Treasury auctions $19 billion of 2-year floating-rate notes and $39 billion of 5-year T-notes, (7) Atlanta Fed President Raphael Bostic (voter) takes part at the LSU Energy Summit in Baton Rouge, LA, (8) Cleveland Fed President Loretta Mester (voter) speaks in a moderated Q&A to the Forecasters Club in New York, (9) Fed Beige Book, (10) Fed Governor Lael Brainard speaks at an event in New York on economic and financial literacy.