- Asia Stocks Rebound as Middle East Concerns Fade: Markets Wrap. Asian stocks rebounded as the risk-off mood sparked by geopolitical tensions in the Middle East ebbed. The yen held losses. Shares rose in Tokyo, Sydney and Seoul. Hong Kong futures tipped a firmer open. U.S. equity futures were flat after the S&P 500 Index rose for the third time in four sessions, erasing early losses, with heavyweight technology companies leading. Gold retreated from the highest in more than six years. Ten-year Treasury yields were around 1.80%. Crude oil fell below $63 a barrel in New York, after reaching the highest since April. Topix index rose 0.8% as of 9:03 a.m. in Tokyo. Australia’s S&P/ASX 200 Index added 0.9%. South Korea’s Kospi index added 0.7%. Hong Kong’s Hang Seng Index futures rose 0.6% earlier. S&P 500 futures were little changed. The S&P 500 Index rose 0.4% in New York.
- Chaos: Pentagon Denies “Poorly Worded” Iraq Withdrawal Letter, Esper Says “No Decision To Leave Iraq, Period”.
- 3 People Critical In Salt Lake City After Tesla Runs Red Light, Smashes Into Car At “High Rate Of Speed”.
- Asian equity indices are +.5% to +1.25% on average.
- Asia Ex-Japan Investment Grade CDS Index 56.0 -.75 basis point.
- China Sovereign CDS 33.25 -1.0 basis point.
- Bloomberg Emerging Markets Currency Index 66.47 +.02%.
- FTSE 100 futures n/a.
- S&P 500 futures +.14%.
- NASDAQ 100 futures +.24%.
Morning Preview Links
Earnings of Note
After the Close:
- None of note
8:30 am EST
- The Trade Deficit for Nov. is estimated at -$43.7B versus -$47.2B in Oct.
10:00 am EST
- Factory Orders for Nov. is estimated to fall -.8% versus a +.3% gain in Oct.
- None of note
Other Potential Market Movers
- The Eurozone CPI report, $38B 3Y T-Note auction, weekly US retail sales reports, Goldman Energy Conference and CES 2020 could also impact trading today.
- 9:30 am – 4:00 pm EST
BOTTOM LINE: Asian indices are higher, boosted by industrial and technology shares in the region. I expect US stocks to open mixed and to rally into the afternoon, finishing modestly higher. The Portfolio is 100% net long heading into the day.
SOURCE: BETWEEN THE HEDGES – Read entire story here.