OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ14 -0.28%) this morning are down -0.27% and European stocks are down -0.23% as world equity markets retreated on concern over global growth after Japan Q3 GDP unexpectedly contracted for a second quarter, a sign of recession. U.S. stocks recovered from their worst levels on increased M&A activity after Halliburton agreed to buy Baker Hughes in a cash/stock deal valued at $34.6 billion. Asian stocks closed mostly lower: Japan -2.96%, Hong Kong -1.21%, China -0.54%, Taiwan -1.10%, Australia -0.77%, Singapore -0.81%, South Korea +0.05%, India +0.47%. Chinese stocks were also undercut on banking concerns after data showed China Q3 non-performing loans rose to the most in 6 years. Commodity prices are mostly lower. Dec crude oil (CLZ14 -1.07%) is down -1.07%. Dec gasoline (RBZ14 -1.29%) is down -1.12%. Dec gold (GCZ14+0.29%) is up +0.24%. Dec copper (HGZ14 -0.59%) is down -0.48%. Agriculture prices are weaker. The dollar index (DXY00 +0.19%) is up +0.21%. EUR/USD (^EURUSD) is down -0.28%. USD/JPY (^USDJPY) is up +0.02% at a new 7-year high on speculation the BOJ may expand stimulus and the government may push back an increase in the national sales tax after data showed Japan entered into recession in Q3. Dec T-note prices (ZNZ14+0.11%) are up +3.5 ticks.

Japan Q3 GDP unexpectedly contracted for a second quarter as it fell -1.6% q/q annualized, weaker than expectations of +2.2% q/q annualized. The Q3 deflator rose +2.1% y/y, stronger than expectations of +1.9% y/y and the fastest pace of increase since the data series began in 1995.

China Q3 non-performing loans rose +10.4% q/q or 72.5 billion yuan ($11.8 billion) to 766.9 billion yuan ($125 billion), the most in 6 years.

UK Nov Rightmove house prices fell -1.7% m/m and rose +8.5% y/y. The +8.5% y/y increase is the largest annual gain in 6 months.