OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 +0.13%) are up +0.08% and European stocks are up +0.81% at a 3-1/2 month high. European stocks recovered from early losses and EUR/USD Slid to a 7-1/2 month low on expectations for the ECB to take additional steps to boost inflation at Thursday’s policy meeting. European automakers were leading the overall market higher with Volkswagen AG and PSA Peugeot Citroen both up more than 2% on expectations of increased profits with the sell-off in EUR/USD. Limiting gains in stocks is a sell-off in BHP Billiton Ltd. which fell nearly 6% to a 7-year low as Brazil said it is seeking $5.2 billion in compensation for a dam collapse at an iron-ore mine run by Billiton ad Vales SA. Asian stocks settled mostly lower: Japan-0.69%, Hong Kong -0.33%, China +0.26%, Taiwan -0.93%, Australia -0.69%, Singapore -0.11%, South Korea -1.94%, India +0.07%. China’s Shanghai Composite rebounded from a 3-week low in the last hour of trade and closed higher on speculation the government intervened in the market to support equities.

The dollar index (DXY00 +0.20%) is up +0.21% at an 8-1/2 month high. EUR/USD (^EURUSD) is down -0.16% at a 7-1/2 month low. USD/JPY (^USDJPY) is up +0.21%.

Dec T-note prices (ZNZ15 -0.10%) are down -5 ticks.

Japan Oct industrial production rose +1.4% m/m and fell -1.4% y/y, weaker than expectations of +1.8% m/m and -0.9% y/y.

German Oct retail sales fell -0.4% m/m and rose +2.1% y/y, weaker than expectations of +0.4% m/m and +2.9% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Nov Milwaukee ISM (expected +1.34 to 48.00, Oct +7.22 to 46.66), (2) Nov Chicago PMI (expected -2.2 to 54.0, Oct +7.5 to 56.2), (3) Oct pending home sales (expected +1.0% m/m and +4.5% y/y, Sep -2.3% m/m and +2.5% y/y), (4) Nov Dallas Fed manufacturing outlook level of general business activity (expected +2.7 to -10.0, Oct -3.2 to 12.7).