OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 +0.02%) are up +0.05% and European stocks are up +0.50% at a 1-week high on signs of strength in European manufacturing activity after the Eurozone Oct Markit manufacturing PMI was revised higher. Stocks prices recovered from earlier losses made on China economic concerns after data showed China Oct manufacturing activity contracted for a third month. Increased M&A activity also lifted European equities after Dyax Corp. surged 27% after Shire Plc agreed to buy the company for $5.9 billion. Asian stocks settled mostly lower: Japan -2.10%, Hong Kong -1.19%, China -1.70%, Taiwan +0.71%, Australia -1.41%, Singapore -0.80%, South Korea +0.48%, India -0.37%. China’s Shanghai Composite and Japan’s Nikkei Stock Index both fell to 1-week lows on concerns over global growth after Chinese manufacturing activity contracted for a third month.

The dollar index (DXY00 -0.13%) is down -0.09%. EUR/USD (^EURUSD) is up +0.07%. USD/JPY (^USDJPY)is up +0.02%.

Dec T-note prices (ZNZ15 -0.21%) are down -5.5 ticks at a 1-1/4 month low and German bunds are down -0.41 at a 1-week low after ECB President Draghi curbed speculation the ECB will said further monetary stimulus is still an “open question.”

The Eurozone Oct Markit manufacturing PMI was revised upward by +0.3 to 52.3.

ECB President Draghi said further stimulus is still as “open question” and it is “too early” to a judgement on lowering the deposit rate.

The China Oct manufacturing PMI was unchanged at 49.8, weaker than expectations of -0.2 to 50.0 and the third straight month of contraction. The Oct non-manufacturing PMI fell -0.3 to 53.1, the slowest pace of expansion in 6-3/4 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) final-Oct Markit manufacturing PMI (expected unrevised at 54.0, prelim-Oct +0.9 to 54.0), (2) Sep construction spending (expected +0.5%, Aug +0.7%), and (3) Oct ISM manufacturing index (expected -0.2 to 50.0, Sep -0.9 to 50.2).