OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ15 +0.64%) are up +0.48% and European stocks are up +2.92%, both at 1-1/2 week highs, after Friday's weaker-than-expected U.S. Sep non-farm payrolls pushed back expectations of a Fed interest rate increase into Q1 of next year. Basic resource companies and energy producing stocks are higher as crude oil and copper rose. European stocks also found support on speculation the ECB may expand its stimulus measures after the Eurozone Sep Markit composite PMI was revised lower and after Eurozone Oct Sentix investor confidence fell to a 9-month low. Asian stocks settled mostly higher: Japan +1.58%, Hong Kong +1.62%, China closed for holiday, Taiwan +0.57%, Australia +1.95%, Singapore +2.08%, South Korea +0.35%, India +2.15%. Emerging stocks and currencies rose along with Asian stock markets after Friday's smaller-than-expected increase in U.S. Sep payrolls boosted speculation the Fed will refrain from raising interest rates this year. Japan's Nikkei Stock Index rallied to a 2-week high and Chinese markets were closed and will remain closed until Thursday for holiday.
The dollar index (DXY00 +0.01%) is down -0.11%. EUR/USD (^EURUSD) is up +0.26%. USD/JPY (^USDJPY) is up +0.27%.
Dec T-note prices (ZNZ15 -0.06%)are down -3.5 ticks.
Speaking in an interview Saturday, Boston Fed President Rosengren said the U.S. economy needs to be growing at a 2.0% pace in the second half of the year to justify an interest rate increase by December. He added that the slower rate of job gains last month and weaker exports validated the FOMC's decision to not raise rates at its September meeting.
The Eurozone Oct Sentix investor confidence fell -1.9 to 11.7, a bigger decline than expectations of -1.8 to 11.8 and the lowest in 9 months.
The Eurozone Sep Markit composite PMI was revised lower to 53.6 from the originally reported 53.9.
Eurozone Aug retail sales were unch m/m, right on expectations, and up +2.3% y/y, stronger than expectations of +1.7% y/y.
