Morning Call For Friday, November 10

OVERNIGHT MARKETS AND NEWS

Dec E-mini S&Ps (ESZ17 -0.38%) this morning are down -0.38% on pessimism U.S. legislators will be able to pass tax reform legislation after the Senate revealed Thursday that its tax plan would delay corporate tax cuts until 2019. The U.S. stock market has rallied sharply this year on expectations meaningful tax cuts would be implemented this year. European stocks are down -0.22% at a 2-week low as they followed U.S. stock indexes lower. Asian stocks settled mostly lower: Japan -0.82%, Hong Kong -0.05%, China +0.14%, Taiwan 0.10%, Australia -0.33%, Singapore -0.11%, South Korea -0.35%, India +0.19%. China's Shanghai Composite bucked the negative trend and rallied to a 1-3/4 year high, led by strength in financial stocks, after the government eased foreign ownership caps on banks and other financial companies.

The dollar index (DXY00 +0.05%) is up +0.09%. EUR/USD (^EURUSD) is up +0.03%. USD/JPY (^USDJPY) is down -0.01%.

Dec 10-year T-note prices (ZNZ17 -0.24%) are down -8.5 ticks at a 1-week low on hawkish comments from San Francisco Fed President Williams who expects a Fed rate hike next month and three more rate hikes next year.

San Francisco Fed President Williams said he expects a Fed rate hike at the Dec FOMC meeting and three more rate hikes in 2018 to return the fed funds rate to "a normal level" of about 2.5%.

UK Sep industrial production rose +0.7% m/m, stronger than expectations of +0.3% m/m and the largest increase in 7 months.

UK Sep manufacturing production rose +0.7% m/m, stronger than expectations of +0.3% m/m and the largest increase in 9 months.

UK Sep construction output fell -1.6% m/m, weaker than expectations of -0.9% m/m and the biggest decline in 1-1/2 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) U.S. Nov University of Michigan consumer sentiment expected +0.2 to 100.9, Oct +5.6 to 100.7.

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