From: Ike Groff Sent Wed 12/11/2013 10:51:39 AM Subject Early Tour 12.11.13 Good Morning ... European Markets up 0-40 bps (France +0.53%, Italy -0.44%) ... NKY -0.62%, SHCOMP -1.49%, HSI -1.71%, KOSPI -0.78%, TWSE -0.11%, ASX -0.76% EUR 1.3761 (unch) JPY 102.48 (+0.35%) EUR/JPY 141.03 (-0.36%) AUD 0.9108 (-0.46%) NZD 0.8258 (-0.65%) US 10yr 2.804% Japan 10yr 0.65% Germany 10yr 1.83% Portugal 10yr 6.03% Italy 10yr 4.04% Spain 10yr 4.01% Futures: Dow -10, Nasdaq -3, S&P -1 DXY $79.96 (unch) Crude S98.52 (+1c) Gold $1254.60 (- $6.50) Copper +0.17% Silver -0.27% Nat Gas -0.42% Asia markets mostly lower overnight with China leading the region lower following a weak handoff from the US. Some reasons used to explain the weakness included speculation from the Workers Conference that China's 2014 GDP target could be set at 7.0-7.5% range (vs current 7.5% target) as well as cautious local sentiment with A-share positions hitting one year low and following the second consecutive week of decline in local trading accounts ahead of the January IPO resumption. There was also a report out in the China Securities Journal that China could phase out its proactive fiscal policy approach in favor of sticking to the principle of keeping fiscal revenue & spending in basic equilibrium to gradually lower the deficit. China November New Yuan Loans were out after the close and came in better at 624.6B vs est 580.0B. The Nikkei also finished lower as the Yen firmed overnight (102.48 last) and Japanese machine orders for October came in at +0.6% vs est +0.7%. European markets generally up a touch in very light volume (tracking 70% of 3m average). News out overnight that US House & Senate negotiators (led by Paul Ryan & Patty Murray) have officially reached a modest budget deal that will peel back some of the automatic sequestration spending cuts, fund the government through the fall of 2015, and reduce the deficit by net $22.5B over the next 10 years thru a m