OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 -0.06%) this morning are down -0.05% and European stocks are down -0.15% as signs of cooling in the Chinese economy undercut global stocks. Commodities and base metals fell after China Aug industrial production grew at a +6.0% y/y pace, the slowest this year, which pushed Dec COMEX copper prices (HGZ17 -1.41%) down -1.39% to a 3-1/2 week low and dragged mining stocks lower. Losses in the overall market were contained as energy stocks rose with Oct WTI crude oil (CLV17 +0.99%) up +0.71% at a 5-week high after OPEC data showed its compliance with production cuts rose to 96% in Aug from 91% in Jul. As expected, the BOE in a 7-2 vote kept its benchmark interest rate at 0.25% and maintained its asset purchase target at 435 billion pounds, but said it sees scope for stimulus reduction in the coming months. Asian stocks settled mixed: Japan -0.29%, Hong Kong -0.42%, China -0.38%, Taiwan +0.20%, Australia -0.10%, Singapore -0.29%, South Korea +0.81%, India +0.17%.

The dollar index (DXY00 -0.15%) is down -0.21%. EUR/USD (^EURUSD) is up +0.09%. USD/JPY (^USDJPY) is up +0.01%.

Dec 10-year T-note prices (ZNZ17 -0.04%) are up +2 ticks.

ECB Executive Board member Praet said that the ECB must be persistent in keeping up stimulus for the Eurozone as economic growth fails to boost consumer prices. He added that, “We are undoubtedly experiencing a solid, broad-based and resilient economic recovery that is contributing to a narrowing of the output and unemployment gaps, but a seeming disconnect between growth and inflation remains.”

China Aug industrial production rose +6.0% y/y, weaker than expectations of +6.6% y/y and the smallest pace of increase this year.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +2,000 to 300,0000, previous +62,000 to 298,000) and continuing claims (expected +25,000 to 1.965 million, previous -5,000 to 1.940 million), (2) Aug CPI (expected +0.3% m/m and +1.8% y/y, Jul +0.1% m/m and +1.7% y/y) and Aug core CPI (expected +0.2% m/m and +1.6% y/y, Jul +0.1% m/m and +1.7% y/y), (3) USDA weekly Export Sales.