OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 -1.41%) are down -1.44% at a 1-week low and European stocks are down -2.51% at a 4-week low. A -2.53% drop in copper prices (HGZ15 -2.57%) to a 2-week low has undercut miners and commodity producers with Rio Tinto Group and BHP Billiton Ltd. down over 4%, while Glencore Plc, the world’s second-largest copper producer, tumbled 9%. European auto makers have been hammered with Volkswagen AG down 20% as U.S. officials familiar with the inquiry said the Justice Department is investigating claims that Volkswagen cheated on federal air-pollution tests. Peugeot SA slid 6.5% after France’s finance minister called for a European investigation of the auto industry. Health-care stocks are also lower, with Roche Holding AG and Novartis AG down almost 3%, after U.S. presidential candidate Clinton said she will propose price caps and research-and-development spending guidelines for the pharmaceutical industry. Asian stocks closed mixed: Japan closed for holiday, Hong Kong +0.18%, China +0.92%, Taiwan +0.71%, Australia +0.74%, Singapore -0.48%, South Korea +0.83%, India -2.07%. China’s Shanghai Composite posted a 1-week high as brokerage stocks rallied on prospects of an exchange link between London and Shanghai after British officials said they will study the feasibility of setting up a London-Shanghai stock trading link.

The dollar index (DXY00 +0.16%) is up +0.14% at a 1-week high. EUR/USD (^EURUSD) is down -0.27% at a 1-1/2 week low. USD/JPY (^USDJPY) is down -0.55%.

Dec T-note prices (ZNZ15 +0.28%) are up +11 ticks on carryover support from a rally in German bunds as the 10-year bund yield fell to a 4-week low of 0.619% as speculation mounts the ECB will expand stimulus after ECB Executive Board member Praet said that policy makers would “forcefully react” to defend their inflation objective.

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