Stocks lower due to concern US economic outlook

EURUSD may test all time highs this week. Stocks lower on general concern on

US economy.

Overnight News Bullets

FR Non-Farm Payrolls QoQ (3Q P) out at 0.2% vs. 0.3% expected.
SZ Adjusted Retail Sales YoY (Sep) out at 7.1% vs. 4.2% expected. Prior at 3.8%.
E-Z Trade Balance (Sep) out at 3.1B vs. 3.0B expected. Prior at 1.9B.
PD Employment MoM/YoY (Oct) out at 0.5%/5.0% vs. 0.3%/4.7% expected. Prior at 0.2%/4.7%.
US Net Long-term TIC Flows (Sep) out at $26.4B vs. $71.5B expected. Prior at -$70.6B
US Total Net TIC Flows (Sep) out at -$14.7B vs. -$60B expected. Prior at -$150.7B.
US Industrial Production MoM (Oct) out at -0.5% vs. 0.1% expected. Prior at 0.2%.
US Capacity Utilization MoM (Oct) out at 81.7% vs. 82.0% expected. Prior at 82.2%.
UK Rightmove House Prices MoM/YoY (Nov) out at -0.7%/7.9% vs. 2.7%/10.4% prior.
JN Nationwide Dept. Sales YoY (Oct) out at 2.0% vs. -4.0% prior.

Markets

FX: Yen continues to climb, with USDJPY firmly below $111. High yielding AUD and NZD both lower, with AUDUSD now pushing for  0.8900.
Stocks: Asian stocks lower, failing to catch up with small rebound in US stocks from Friday.
Fixed Income: US Treasuries little changed ahead of Fed release of October minutes, JGBs mixed with 10-yr bonds marginally higher while 5-yr notes lower on reduced demand. Bunds little changed.
Commodities: Crude oil again trading above $94 a barrel. Gold consolidating around $790 an ounce and silver around $14.57.

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What's going on?

Early advances in Asian stocks proved to be unsustainable on Monday’s trading, after comments by Chinese regulator prompting banks to cool lending. There are increasing signs that Chinese officials are trying to slow the overheating Chinese economy.
Yields on T-bills are near the lows of August and US interest-rate futures are indicating a very high probability that the Fed would cut benchmark rates both in December and again in Q1 in 2008.

After corrective selling of last week, crude prices have again rallied to over $94 a barrel, as weakening dollar continues to spur buying action of speculators who hold other currencies.

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