Giving Up Early Gains

Economic Data

- (IL) Israel Oct Unemployment Rate: 5.7% v 6.3% prior
- (CL) Chile Oct PPI M/M: -1.6% v -0.7% prior
- (BR) Brazil Oct Current Account Balance: -$8.1B v -$7.5Be; Foreign Direct Investment (FDI): $5.0B v $4.2Be
- (TR) Turkey Nov Real Sector Confidence (Seasonally Adj): 108.4 v 110.1 prior; Real Sector Confidence (unadj): 102.7 v 106.9 prior
- (TR) Turkey Nov Capacity Utilization: 74.5% v 74.9% prior
- (US) Oct Chicago Fed National Activity Index: 0.14 v 0.40e
- (IL) Israel Central Bank leaves Base Rate unchanged at 0.25%, as expected
- (BE) Belgium Nov Business Confidence: -6.1 v -6.9e
- (MX) Mexico Oct Unemployment Rate (unadj): 4.8% v 4.9%e; Unemployment Rate (Seasonally Adj): 4.7% v 4.7%e
- (US) Nov Preliminary Markit Services PMI: 56.3 v 57.3e; Composite PMI: 56.1 v 57.2 prior
- (US) Nov Dallas Fed Manufacturing Activity: 10.5 v 9.0e

The slightly better-than-expected November German IFO survey buoyed sentiment this morning, although European indices are well off their highs. The S&P500 saw good gains before and just after the open of cash trading, led higher by financial stocks. As of writing the DJIA is flat, the S&P500 is up 0.15% and the Nasdaq is up 0.57%.

WTI crude made a run at $77 earlier in the session on reports that Russia could match oil production cuts made by OPEC. Reports suggested that Russia might cut oil production by 300K bpd if OPEC cut 1.4M bpd. Later Russia Oil Minister Novak said that global oil markets were oversupplied to the tune of 800K bpd and pledged that Russia would not boost production in order to "help market stability."

The headline November Dallas Fed manufacturing survey was pretty good, but surely not the blowout seen in the Philly Fed last week. Component indices are less impressive, however, with all component declining from October levels and the key new orders segment one third the prior month's level. The October Chicago Fed national tracking index was much weaker than expected and the September data was revised lower.

BioMarin Pharmaceuticals reached a deal to acquire Prosensa for up to $840 million. This comes just about one year after the firm's main Phase III clinical trial of drisapersen failed to improve the walking ability of boys suffering from Duchenne Muscular Dystrophy, which drove GlaxoSmithKline to drop its big partnership with the firm. The deal is $17.75 per share in cash, plus two milestone payments of approximately $80 million. RNA is up more than 60% on the news, while competitor SRPT is up 5.4% in sympathy.

Looking Ahead

- 13:00 (US) Treasury to sell $28B in 2-Year Notes
- 18:50 (JP) Bank of Japan (BOJ) Oct. 31 meeting minutes
- 20:00 (JP) BOJ Gov Kuroda speaks in Nagoya
- 23:00 (JP) BOJ's Nakaso with ECB's Noyer in Tokyo