OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 +0.32%) are up +0.32% and European stocks are up +0.86% after China Oct retail sales rose by the most this year. Increased M&A activity is also supportive for stocks with SABMiller Plc up +1.7% after Anheuser-Busch InBev NV made a formal offer to buy it for about $107 billion. On the negative side is weakness in miners and raw-material producers after China Oct industrial production rose at the slowest pace in nearly 7 years, which sent Dec copper (HGZ15 -0.34%) down -0.32% to a 6-1/3 year low. Also, energy producers are weaker with Dec crude oil (CLZ15-1.31%) down -1.18% to a 2-week low. Asian stocks settled mixed: Japan +0.10%, Hong Kong -0.22%, China +0.27%, Taiwan -1.43%, Australia +0.46%, Singapore -0.54%, South Korea unch, India closed for holiday. Japan’s Nikkei Stock Index climbed to a 2-1/2 month high on expectations for divergent central bank policies that weaken the yen to continue as the BOJ is expected to expand stimulus while the Fed is expected to raise interest rates. This will weaken the yen, which boosts the earnings prospects of Japanese exporters.

The dollar index (DXY00 -0.11%) is down -0.10%. EUR/USD (^EURUSD) is down -0.09%. USD/JPY (^USDJPY) is unch.

Dec T-note prices (ZNZ15 -0.10%) are down -4.5 ticks.

China Oct industrial production rose +5.6% y/y, weaker than expectations of +5.8% y/y and matched the Mar 2015 gain as the slowest pace of increase in nearly 7 years.

China Oct retail sales rose +11.0% y/y, stronger than expectations of +10.9% y/y and the fastest pace of increase since Dec of 2014.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -0.8% with purchase mortgage sub-index -0.6% and refi sub-index-0.9%). Government offices and cash government bond trading are closed today for Veterans Day but Globex financial futures and stocks exchanges are open during regular hours.