Dec E-mini stock futures this morning are up +3.00 points (+0.10%) at a new all-time nearest-futures high and European stocks are up +0.16% at a 1-week high. Trade optimism continues to propel stocks higher after President Trump on Tuesday evening said that talks on the first phase of a trade deal were nearly done and “we’re in the final throes of a very important deal” with China. Gains in stocks were limited as Deere & Co fell 4% in pre-market trading after it forecast 2020 net income of $2.7 billion to $3.1 billion, weaker than consensus of $3.46 billion. European stocks found support and EUR/USD fell -0.15% to a 1-1/2 week low on signs the ECB will continue to provide stimulus when ECB Governing Council member Vasiliauskas said “I don’t think we’ll exit the negative interest rate environment” in 2020. Asian stocks settled mixed as China’s Shanghai Composite closed down -0.13% and Japan’s Nikkei Stock Index closed up +0.28%. Chinese stocks fell back on economic concerns after China Oct industrial profits fell a record -9.9% y/y, the most since data first began in 2011. The dollar index is up +0.07% at a 1-1/2 week high. USD/JPY is up +0.07%. Dec 10-year T-notes are down -1.5 ticks.
ECB Governing Council member Vasiliauskas said “I don’t think we’ll exit the negative interest rate environment in the short-term and I don’t see such a prospect in 2020.”
The German Oct import price index fell -3.5% y/y, right on expectations and the steepest pace of decline in 3-1/4 years.
China Oct industrial profits fell -9.9% y/y, the third consecutive month profits have fallen and the steepest pace of decline in 8 years.