Morning Call For Tuesday, Oct. 30

Overnight Markets And News

Dec E-mini S&Ps (ESZ18 +0.34%) this morning are up +0.32% on optimism the U.S. and China can resolve their trade differences after President Trump in an interview with Fox News late Monday said, “I think we will make a great deal with China, and it has to be great because they’ve drained our country.” President Trump and Chinese President Xi Jinping are scheduled to meet at the G-20 summit in Buenos Aires next month. European stocks are down -0.28% after Eurozone Q3 GDP grew at the slowest pace in nearly 4 years and after Eurozone Oct economic confidence fell to a 17-month low. Asian stocks settled mixed: Japan +1.45%, Hong Kong -0.91%, China +1.02%, Taiwan +0.10%, Australia +1.34%, Singapore -0.51%, South Korea +0.88%, India -0.52%. China’s Shanghai Composite recovered from a 1-week low and closed higher after the China Securities Regulatory Commission said it will increase stock market liquidity and encourage long-term funds to invest in shares. Chinese stocks had moved lower on U.S.-China trade concerns along with weakness in the yuan which tumbled to a 10-1/4 year low of 6.9741 per dollar. Japanese shares closed higher as exporter stocks rallied after USD/JPY climbed to a 1-week high, which boosts the earnings prospects of exporters.

The dollar index (DXY00 +0.34%) is up +0.29% at a 2-1/2 month high. EUR/USD (^EURUSD -0.19%) is down -0.19. USD/JPY (^USDJPY +0.41%) is up +0.39% at a 1-week high.

Dec 10-year T-note prices (ZNZ18 -0-055) are down -7 ticks.

Eurozone Q3 GDP rose +0.2% q/q and +1.7% y/y, weaker than expectations of +0.4% q/q and +1.8% y/y with the +1.7% y/y gain the slowest year-on-year pace of growth since Q4 2014.

Eurozone Oct economic confidence fell -1.1 to a 17-month low of 109.8, weaker than expectations of -0.9 to 110.0. The Oct business climate indicator fell -0.20 to a 17-month low of 1.01, weaker than expectations of -0.05 to 1.16.

German Oct unemployment fell -11,000 to 2.292 million, slightly less than expectations of -12,00. The Oct unemployment rate remained unchanged as expected at 5.1%, the lowest since German reunification.

The Japan Sep jobless rate unexpectedly fell -0.1 to 2.3%, stronger than expectations of no change at 2.4%. The Sep job-to-applicant ratio rose +0.1 to a 44-3/4 year high of 1.64, stronger than expectations of no change at 1.63.