Morning Call For Sept. 22, 2014

OVERNIGHT MARKETS AND NEWS

December E-mini S&Ps (ESZ14 -0.30%) this morning are down -0.35% and European stocks are down -0.12% as global stocks moved lower after comments from China's finance minister dampened speculation his government will boost economic stimulus. Chinese Finance Minister Lou Jiwei said that growth in China faces downward pressure and that there won't be major changes in policy in response to individual economic indicators. Another negative for global stocks was the communique released from the G-20 meeting in Australia that said low interest rates could lead to a potential increase in financial-market risk as major economies rely on monetary stimulus to bolster uneven growth. Asian stocks closed mostly lower: Japan -0.71%, Hong Kong -1.44%, China -1.91%, Taiwan -1.14%, Australia -1.29%, Singapore -0.26%, South Korea -0.82%, India +0.43%. Commodity prices are mostly lower. Oct crude oil (CLV14 +0.16%) is down -0.08%. Oct gasoline (RBV14 -0.76%) is down -0.61%. Dec gold (GCZ14 -0.26%) is down -0.16%. Dec copper (HGZ14 -1.62%) is down -1.57% at a 3-month low on Chinese demand concerns. Agriculture prices are mixed. The dollar index (DXY00 -0.02%) is up +0.01%. EUR/USD (^EURUSD) is up +0.09%. USD/JPY (^USDJPY) is up +0.01%. Dec T-note prices (ZNZ14 +0.13%) are up +5.5 ticks.

The communique released Sunday following the 3-day meeting of G-20 finance chiefs and central bankers in Cairns, Australia said that "We are mindful of the potential for a build-up of excessive risk in financial markets, particularly in an environment of low interest rates and low asset price volatility. We welcome the stronger economic conditions is some key countries, although growth in the global economy is uneven."

Comments from ECB Executive Board member Coeure suggest the ECB may wait before expanding stimulus measures further when he said that the ECB will gauge the effects of monetary stimulus unveiled in June and September before deciding whether more action is needed to bring inflation back toward 2%. "In the case it would not be enough, the Governing Council is ready to do more, but it's way too early to tell."

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