Morning Call For November 24, 2015

OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ15 -0.53%) are down -0.47% and European stocks are down -1.15% on heightened geopolitical risks in the Middle East after Turkey shot down a Russian military jet on its Syrian border. Turkey’s state-run Anadolu News Agency said the Russian Su-24 jet was warned repeatedly after violating Turkish airspace before being shot down. NATO said it was watching the situation “closely” and Russian Foreign Minister Lavrov is scheduled to meet officials in Turkey tomorrow. On the positive side, German business confidence unexpectedly rose to the highest in 17 months. Asian stocks settled mixed: Japan +0.23%, Hong Kong -0.35%, China +0.16%, Taiwan -1.01%, Australia -0.95%, Singapore +0.69%, South Korea +0.65%, India -0.17%. China’s Shanghai Composite closed higher after people familiar with the matter said China has canceled a rule requiring brokerages to hold daily long positions in their proprietary trading accounts, which should improve the earnings prospects of brokerages.

The dollar index (DXY00 -0.16%) is down -0.15%. EUR/USD (^EURUSD) is up +0.09%. USD/JPY (^USDJPY) is down -0.21% at a 1-week low as the yen strengthened on increased safe-haven demand as stocks fell on the downing of the Russian warplane.

Dec T-note prices (ZNZ15 +0.11%) are up +6.5 ticks at a 2-1/2 week high as government bonds climbed worldwide on increased safe-haven demand after Turkish forces on the Syrian border shot down a Russian warplane.

The German Nov IFO business climate rose +0.8 to 109.0, stronger than expectations of unch at 108.2 and the highest in 17 months.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) revised Q3 GDP (expected +2.1% q/q annualized vs previous +1.5%) and Q3 personal consumption (expected unrevised at +3.2%), (2) Sep S&P CaseShiller composite-20 home price index (expected +0.30% m/m and +5.10% y/y, Aug +0.11% m/m and +5.09% y/y), (3) Nov U.S. consumer confidence from the Conference Board (expected +1.9 to 99.5, Oct -5.0 to 97.6), (4) Nov Richmond Fed manufacturing survey (expected +2 to 1, Oct +4 to -1), and (5) the Treasury’s auction of $13 billion of 2-year floating rate notes and $35 billion of 5-year T-notes.

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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