Overnight Markets And News
Dec E-mini S&Ps (ESZ18 -0.45%) this morning are down -0.50% at a 3-1/2 week low as energy stocks tumble with Jan WTI crude oil prices (CLF19 -4.52%) down sharply by -4.28% at a 13-month low on signs of oversupply. Saudi Energy Minister Khalid Al-Falih said Saudi Arabia is producing in excess of 10.7 million bpd, which would be a new record. Further losses in stocks may be contained on signs of a strong start to the holiday shopping season after Adobe Analytics said U.S. consumers spent about $1.75 billion online as of 5 pm Thursday, up almost 29% from a year ago. Also, researcher Consumer Growth estimated Black Friday sales my produce $24 billion in sales. European stocks are up +0.06% as Italian political risks eased after the yield on Italy’s 10-year government bond dropped to a 2-week low of 3.352% when Italian Deputy Premier Di Maio said there are “margins” for a dialog with the EU. Also, Italian Prime Minister Conte said his government would ask the EU to delay any infringement procedure as it works to resolve its budget standoff with the EU. Gains in European stocks were limited on signs of a slowdown in the Eurozone economy after the Eurozone Nov Markit manufacturing PMI fell -0.5 to a 2-1/2 year low of 51.5. Asian stocks settled mostly lower: Japan and India closed for the holiday, Hong Kong -0.35%, China -2.49%, Taiwan -0.49%, Australia +0.44%, Singapore +0.37%, South Korea -0.53%. China’s Shanghai Composite fell to a 3-week low on a sell-off in Chinese technology stocks after the WSJ reported the U.S. was contacting allies in an attempt to persuade telecommunications companies in their countries to avoid using equipment from China’s Huawei Technologies.
The dollar index (DXY00 +0.09%) is up +0.11%. EUR/USD (^EURUSD -0.41%) is down -0.40%. USD/JPY (^USDJPY-0.09%) is down -0.12%.
Dec 10-year T-note prices (ZNZ18 +0-020) are up +3 ticks.
The Eurozone Nov Markit manufacturing PMI fell -0.5 to 51.5, weaker than expectations of no change at 52.0 and the slowest pace of expansion in 2-1/2 years.
