Good morning. Here's what you need to know.
- Markets in Asia were mixed in overnight trading. The Japanese Nikkei 225 rose 1.7%, the Hong Kong Hang Seng fell 1.1%, and the Shanghai Composite dropped 1.0%. European markets are rallying strongly across the board, led by Spain, currently up 1.6%. In the United States, futures point to a flat open.
- Gold briefly fell below $1200 an ounce this morning after some big sell orders hit the tape at approximately 7:40 AM GMT. Right now, it trades just above $1200, but is still around $30 lower from yesterday's prices (down 2.5%). Treasuries are also selling off this morning following the FOMC's decision Wednesday to begin tapering down its quantitative easing program.
- EU finance ministers agreed to a bank-resolution plan late Wednesday evening, and EU bank stocks are getting a lift on the news. However, the European Parliament must also approve the deal. It passed its own version of the deal on Tuesday, but it differs significantly from the road map laid out by EU finance ministers last night.
- In the week ended December 13, Japanese investors bought ¥110.5 billion of foreign bonds (down from ¥390.1 billion in the previous week) and sold ¥212.5 billion of foreign stocks (up from sales of ¥127.5 billion in the previous week). Meanwhile, foreign investors bought ¥425.5 billion of Japanese bonds after selling ¥12.4 billion in the previous week, and bought ¥619.3 billion of Japanese stocks, up from ¥114.3 billion the week before.
- U.K. retail sales growth accelerated to 2.0% year over year in November from 1.8% in October, but failed to meet expectations for a stronger acceleration to 2.2%. Core retail sales (a measure that excludes sales of autos) also came short, posting 2.3% growth from a year earlier — unchanged from October's rate and below expectations for a tick up to 2.4%.
- Yesterday, the FOMC surprised market participants by announcing the first reduction in the pace of bond buying under QE3. Today, Dallas Fed president Richard Fisher speaks on the economy at 8:30 AM ET. Though we just heard from Fed chairman Ben Bernanke yesterday at the FOMC press conference following the release of the decision, it will be interesting to see if Fisher adds any more color.
- Weekly jobless claims figures kick off the economic data releases in the United States this morning, due out at 8:30 AM. Economists predict initial claims fell to 332,000 in the week ended December 14, while continuing claims in the week ended December 7 are expected to have moderated to 2.775 million from 2.791 million.
- Up next is the release of November existing home sales data at 10 AM. Economists predict sales of existing homes fell 2.0% in November from the previous month to 5.02 million units at an annualized rate. In October, sales fell 3.2% to 5.12 million units annualized.
- Also out at 10 AM is the Philly Fed's monthly Business Outlook Survey. The report's headline index, which serves as a gauge of regional manufacturing conditions, is expected to rise to 10 from November's 6.5 reading.
- Finally, the Conference Board's index of leading economic indicators is released at 10 AM as well. The forward-looking index is expected to post November gains of 0.7%, marking an acceleration from October's 0.2% advance. Follow all of the data LIVE on Business Insider »
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