OVERNIGHT MARKETS AND NEWS
December E-mini S&Ps (ESZ15 +0.35%) are up +0.31% and European stocks are up +1.79% ahead of today's U.S. payrolls report that may help gauge when the Fed will raise interest rates. Despite being closed for the next week due to holiday, China took steps to boost economic growth that also gave equity markets a lift when they eased mortgage requirements and took measures to increase car purchases. European stocks were also underpinned on remarks from ECB President Draghi who said late Thursday that growth is returning to Europe. Asian stocks settled mixed: Japan +0.02%, Hong Kong +3.17%, China and India closed for holiday, Taiwan +0.11%, Australia -1.18%, Singapore -0.31%, South Korea -0.62%. Casino operators led gains in Hong Kong stocks that surged over 3% as data showed Macau's monthly gaming revenue was in line with expectations and after the Macau Daily reported that China is studying measures to revive the city's economy.
The dollar index (DXY00 +0.13%) is up +0.15%. EUR/USD (^EURUSD) is down -0.30% on speculation the ECB may expand QE after Eurozone Aug producer prices fell at the fastest pace in 7 months. USD/JPY (^USDJPY) is up +0.23%.
Dec T-note prices (ZNZ15 -0.05%) are down -4 ticks.
ECB President Draghi, speaking at an awards event in New York Thursday evening, said that economic growth in the Eurozone “is returning” and that “the progress achieved over the past three years to stabilize and strengthen the Eurozone is real.”
Eurozone Aug PPI fell -0.8% m/m, weaker than expectations of -0.6% m/m and the largest monthly decline in 7 months. On an annual basis, Aug PPI fell-2.6% y/y, weaker than expectations of -2.4% y/y and the fastest pace of decline in 6 months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Sep non-farm payrolls (expected +200,000, Aug +173,000) and Sep unemployment rate (expected unch at 5.1%), (2) Sep New York ISM (Aug -17.7 to 51.1), (3) Aug factory orders (expected -1.2%, Jul +0.4% and -0.6% ex transportation), (4) St. Louis Fed President James Bullard's speech on monetary policy to the Shadow Open Market Committee at the Princeton Club, and (5) Fed Vice Chair Stanley Fischer's speech at a Boston Fed conference on “Macroprudential Monetary Policy.”
