OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ14 +0.17%) this morning are up +0.10% as energy producers gained in pre-market trading after the price of crude oil rose from a 5-1/3 year low. U.S. stocks also found support on expectations that today’s data on U.S. Nov retail sales will be positive. European stocks are down -0.15% after mining companies fell with Anglo American Plc down more than 2% to a 5-year low and Glencore Plc down over 3%. The 10-year German bund yield fell to a record low of 0.656% on speculation the ECB will have to revert to large-scale quantitative easing after the ECB’s second round of targeted loans to Eurozone banks fell short of expectations. The Bank of Russia raised its key interest rate by +1.0 point to 10.5% from 9.5%, although that failed to stop the slide in the ruble which fell to a record low of 55.4747 per dollar, Asian stocks closed lower: Japan -0.89%, Hong Kong-0.90%, China -1.20%, Taiwan -0.21%, Australia -0.53%, Singapore -0.21%, South Korea -1.53%, India -0.82%. Commodity prices are mixed. Jan crude oil (CLF15 +0.77%) is up +1.10%. Jan gasoline (RBF15 +0.61%) is up +1.03%. Feb gold (GCG15 -0.36%) is down -0.54%. Mar copper (HGH15+0.33%) is up +0.41%. Agriculture prices are mixed. The dollar index (DXY00 -0.12%) is down -0.05%. EUR/USD (^EURUSD) is up +0.10%. USD/JPY (^USDJPY) is up +0.45%. Mar T-note prices (ZNH15 +0.18%) are up +5 ticks at a 1-week high on carry-over support from a rally in 10-year German bunds to an all-time high.
The ECB allotted 130 billion euros ($161 billion) to Eurozone banks at a fixed interest rate of 0.15% in its second round of targeted longer-term refinancing operations (TLTROs). That was below market expectations of 148 billion euros in TLTROs and bolsters the case for the ECB to start large-scale quantitative easing.
The German Nov CPI (EU harmonized) was left unrevised at unch m/m and +0.5% y/y.
