OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 -0.23%) are down -0.10% as they fall back from a 1-3/4 month high in overnight trade. Stocks retreated after China reported its slowest pace of growth in 6-1/2 years and as Morgan Stanley dropped over 5% in pre-market trading when it reported weaker-than-expected Q3 earnings. European stocks are up +0.54% at a 5-week high led by a 4% rally in Deutsche Bank AG after it reshuffled its management in an attempt to reshape the company. Asian stocks settled mixed: Japan -0.88%, Hong Kong +0.04%, China -0.14%, Taiwan +0.31%, Australia +0.03%, Singapore -0.20%, South Korea +0.04%, India +0.55%. China’s Shanghai Composite rose to a 1-3/4 month high after China Q3 GDP grew at a faster pace than expected, but the slowest pace of manufacturing activity in 6 months undercut stocks as they shed their gains and closed slightly lower.

The dollar index (DXY00 +0.30%) is up +0.32%. EUR/USD (^EURUSD) is down -0.23% at a 1-week low ahead of Thursday’s ECB monetary policy meeting. USD/JPY (^USDJPY) is unchanged.

Dec T-note prices (ZNZ15 -0.15%) are down -6 ticks.

New York Fed President Dudley said “it’s still too early to consider an interest-rate increase.” He added that “the situation has changed in the past few months. It’s true that we thought we could raise rates by the end of 2015, but turbulence in financial markets, modest global growth, energy prices and macro-prudential imbalances are slowing this process down.”

China Q3 GDP rose +6.9% y/y, stronger than expectations of +6.8% y/y, but still the slowest pace of growth in 6-1/2 years.

China Sep industrial production rose +5.7% y/y, weaker than expectations of +6.0% y/y and the slowest pace on 6 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Oct NAHB housing market index (expected unch at 62, Sep +1 to 62), and 92) Richmond Fed President Jeffrey Lacker’s speech on “Early Childhood Education in the Context of Lifetime Human Capital Investment” at the University of Richmond.