OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 +0.12%) this morning are up +0.06% and European stocks recovered from a 3-1/2 week low and are up +0.33% as a rally in Spain’s IBEX Stock Index leads European stocks higher. Spain’s IBEX Stock Index jumped +1.54% and gave European stocks a lift after people familiar with the matter said that Catalonia President Puigdemont may call regional elections this week, rather than declare independence from Spain. Catalonia President Puigdemont is set to address the Catalan parliament Thursday evening. Market activity remains subdued ahead of the outcome of this morning’s ECB meeting where expectations are for the ECB to announce a reduction in monetary stimulus. Asian stocks settled mostly higher: Japan +0.15%, Hong Kong -0.36%, China +0.31%, Taiwan -0.15%, Australia +0.18%, Singapore +0.37%, South Korea -0.70%, India +0.32%. China’s Shanghai Composite climbed to a 1-3/4 year high, led by a rally in railway stocks, on speculation the government will boost investment in the sector.

The dollar index (DXY00 +0.01%) is down -0.01%. EUR/USD (^EURUSD) is down -0.02%. USD/JPY (^USDJPY) is down -0.09%.

Dec 10-year T-note prices (ZNZ17 +0.14%) are up +5 ticks.

Eurozone Sep M3 money supply rose +5.1% y/y, stronger than expectations of +5.0% y/y and the fastest pace of increase in 6-months.

German Nov GfK consumer confidence unexpectedly fell -0.1 to 10.7, weaker than expectations of unch at 10.8.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +13,000 to 235,000, previous -22,000 to 222,000) and continuing claims (expected +7,000 to 1.895 million, previous -16,000 to 1.88 million), (2) Sep wholesale inventories (expected +0.4%, Aug +0.9%), (3) Sep pending home sales (expected +0.4% m/m, Aug -2.6% m/m and -3.1%y/y), (4) Oct Kansas City Fed manufacturing activity index (expected unch at 17, Sep +1 to 17), (5) Treasury auctions $28 billion of 7-year T-notes, and (6) USDA weekly Export Sales.

Notable S&P 500 earnings reports today include: Amazon.com (consensus $0.03), Alphabet (8.33) Microsoft (0.72), UPS (1.45), Intel (0.80), Ford (0.33), Comcast (0.50),