Morning Call For Wednesday, Dec. 13


Mar E-mini S&Ps (ESH18 -0.04%) this morning are little changed, down -0.02%, and European stocks are down -0.18% ahead of the conclusion of the 2-day FOMC meeting later today where the market expects the FOMC to raise the fed funds target range by 25 bp. The downside for stocks was limited with strength in energy and mining companies. Energy stocks rose with Jan WTI crude oil (CLF18 +0.67%) up +0.56% after the API reported late yesterday that U.S. crude inventories fell -7.38 million bbl last week. Mining stocks garnered support from a +0.86% gain in Mar COMEX copper prices (HGH18 +0.76%) to a 1-week high on signs of tighter supplies after LME copper inventories dropped -1,875 MT to a 1-week low of 191,600 MT. Asian stocks settled mixed: Japan -0.47%, Hong Kong +1.49%, China +0.68%, Taiwan +0.26%, Australia +0.14%, Singapore +0.09%, South Korea +0.65%, India -0.53%.

The dollar index (DXY00 -0.04%) is down -0.08%. EUR/USD (^EURUSD) is down -0.01%. USD/JPY (^USDJPY) is down -0.21%.

Mar 10-year T-note prices (ZNH18 -0.13%) are down -3.5 ticks at a 1-week low ahead of an expected rate hike by the FOMC later today.

The UK Oct employment change fell -56,000, weaker than expectations -40,000 and the largest decline in 2-1/3 years. The ILO unemployment rate was unch at 4.3% for the three months through Oct, weaker than expectations of -0.1 to 4.2%.

Eurozone Oct industrial production rose +0.2% m/m and +3.7% y/y, stronger than expectations of unch m/m and +3.2% y/y.

Japan Oct core machine orders rose +5.0% m/m and +2.3% y/y, stronger than expectations of +2.9% m/m and -3.4% y/y.


Key U.S. news today includes: (1) weekly MBA mortgage applications (previous +4.7% with purchase sub-index +2.4% and refi sub-index +9.0%), (2) Nov CPI (expected +0.4% m/m and +2.2% y/y, Oct +0.1% m/m and +2.0% y/y) and Nov CPI ex food & energy (expected +0.2% m/m and +1.8% y/y, Oct +0.2% m/m and +1.8% y/y), (3) EIA weekly Petroleum Status Report, (4) FOMC announces interest rate decision (expected 25 bp hike in fed funds target range to 1.25%-1.50% from 1.00%-1.25%).

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Disclosure: None.

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