OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 +0.05%) are up +0.02% ahead of speeches today by Fed Chair Yellen and several other FOMC members who are all expected to discuss monetary policy and may provide a clue as to the certainty of an interest rate hike next month. European stocks are down -0.55%, led by a 20% plunge in Rolls-Royce Holdings Plc after the company warned ifs 2016 profit may take a nearly $1 billion hit from lower demand for aircraft engines. Stocks also fell after ECB President Draghi warned that downside economic risks from global growth are “clearly visible.” Asian stocks settled mixed: Japan +0.03%, Hong Kong +2.40%, China -0.48%, Taiwan +0.16%, Australia +0.06%, Singapore -0.76%, South Korea -0.29%, India closed for holiday. Japan’s Nikkei Stock Index eked out a new 2-1/2 month high as USD/JPY remains near a 2-1/2 month high and the weak yen boosted Japanese exporters as their earnings prospects improve. China’s Shanghai Composite closed lower after a gauge of new credit in China rose by the least in 15 months last month.

The dollar index (DXY00 +0.14%) is up +0.16%. EUR/USD (^EURUSD) is down -0.29% on comments from ECB President Draghi that signal the ECB may expand stimulus. USD/JPY (^USDJPY) is up +0.13%.

Dec T-note prices (ZNZ15 +0.06%) are up +3 ticks.

ECB President Draghi signaled that he may step up stimulus measure when he said that “signs of a sustained turnaround in core inflation have somewhat weakened” and that “downside risks stemming from global growth and trade are clearly visible.”

China Oct new yuan loans rose by 513.6 billion yuan, less than expectations of 800 billion yuan and the smallest gain in 15 months. Oct aggregate financing, the broadest measure of new credit, rose by 476.7 billion yuan, less than half expectations of 1.050 trillion yuan and also the smallest increase in 15 months.

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