Last checked at 
Main U.S. indexes advance, but off best levels: Nasdaq up ~2.1%
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Cons disc leads S&P 500 sector gainers; energy sole loser
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Euro STOXX 600 index up ~0.3%
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Dollar, crude fall; gold ~flat; bitcoin gains
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U.S. 10-Year Treasury yield falls to ~3.80%
Nov 15 - Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at
UK POWER GENERATORS: SELL THE NEWS AFTER BUDGET? (1100 EST/1600 GMT)
Thursday is budget day in the UK and power generators are among the potential losers should finance minister Jeremy Hunt get on with plans for a big increase in windfall tax.
Yet, some see scope for a sell the news reaction.
"Speculation in the UK press over the weekend has centred on a windfall tax increase to 35% for both oil & gas companies and power generators," say analysts at UK bank Barclays.
"We will have details Thursday 17 November. Power generator share prices reflect more than our worst-case government intervention scenarios, and we expect clarity to drive a rerating," they argue.
Shares in UK power generators SSE, National Grid and Drax have fallen 9%, 11% and 24% respectively over the last three months, clearly lagging the FTSE 350 index, as you see in the chart.
For more on the budget: GRAPHIC-Sterling, Big Oil and homebuilders: the winners and losers from upcoming UK budget
SIMMER DOWN, NOW: PPI CONFIRMS INFLATION COOL-DOWN, EMPIRE STATE BOUNCES BACK (1042 EST/1542 GMT)
Two-fer Tuesday brought with it a welcome data double-shot, showing further evidence of cooling inflation and a rebound in New York manufacturing.
Since the "I" word has been everyone's favorite obsession this year, let's start with the Labor Department's Producer Prices index (PPI).
PPI, which measures the prices U.S. companies get for their goods and services at the proverbial factory door, echoed last week's CPI report by cooling down much faster than analysts expected.
"Inflation is starting to dwindle in the pipeline, and obviously that will show up in consumer inflation as well," says Peter Cardillo, chief market economist at Spartan Capital Securities in New York. "This is good news for the markets and good news for the consumer. It confirms that we've peaked in inflation.
The headline "final demand" number notched a 0.2% monthly increase - half the consensus rate - and shed 0.4 percentage point on a yearly basis to an even 8%.
Core PPI, which strips away volatile food, energy and trade services prices, also cooled down, to 0.2% and 5.4%, on monthly and annual bases, respectively.
With respect to "intermediate demand," which tracks business-to-business prices, an 11.7% monthly plunge in raw materials bodes well for consumer prices down the pike.
All told, the report supports the case for the Fed easing its hawkish foot off the rate hike accelerator in December.
Financial markets have now priced in an 85% likelihood of a smaller, 50 basis point interest rate hike next month, and nearly 55% chances of an even tinier 25 basis point hike at the central bank's February meeting.
The graphic below shows core PPI along with other major indicators, and where they sit relative to Powell & Co's average annual 2% inflation target. PPI is the third consecutive data point (after wage growth and CPI) to suggest we turned the corner last month:
The award for best performance by an indicator in a supporting role goes to east coast factories.
The New York Fed's Empire State index surprised to the upside, delivering a reading of 4.5 and unexpectedly bouncing back to expansion territory in November after three months of moving in reverse.
An Empire State number above zero signifies a monthly increase of activity.
On a granular level, however, it's a mixed picture.
Shipments increased, but new orders softened. Inventories rebounded, employment continues to expand, but the prices paid component - moving in opposition to PPI - gathered heat.
"Although manufacturing activity returned to expansion, activity is expected to slow heading into 2023," writes Gurleen Chadha, U.S. economist at Oxford Economics. "Weakening domestic demand, high inflation, elevated interest rates, and recessionary pressures are likely to constrain the sector's advance."
A clearer picture of Atlantic regional manufacturing will be provided on Thursday, when the Philly Fed data hits the boards.
Wall Street liked the data just fine, veering sharply higher at the opening bell.
Communication services, along with other FANG-related mega-caps, as well as chips, are leading the way, boosting the tech-laden Nasdaq more than 11% above its Oct. 14 trough.
GREEN MACHINE (1012 EST/1512 GMT)
Wall Street's main indexes are sharply higher early on Tuesday as U.S. producer prices rose less than expected in October, providing fresh evidence of cooling inflation and boosting hopes of smaller interest rate hikes.
With this, the Nasdaq is posting a gain of around 2.5%. The DJI and S&P 500 are both up around 1% or more.
All S&P 500 sectors are green with tech leading the way higher. Chips and FANGs are outperforming with both indexes, rising around 4%.
Of note, the SPX is now within 1.5% of its descending 200-day moving average, which is now around 4,075. The 200-DMA capped strength in late-August.
Here is an early trade snapshot:
U.S. STOCK FUTURES POP ON MORE PEACEFUL PPI (0900 EST/1400 GMT)
U.S. stock index futures have strengthened in the wake of cooler than expected inflation data released at 0830 EST/1330 GMT.
October headline PPI month-over-month and year-over-year were weaker than the prior month and below estimates, as were ex-food and energy readings:
Stock futures were higher ahead of the numbers after a meeting between President Joe Biden and Chinese leader Xi Jinping in which they pledged more frequent communications.
In the wake of the data, Nasdaq 100 futures, which had been up as much as 1.6%, are now up nearly 3%.
According to the CME's tool, the market now sees a 91% chance of a 50 basis point Fed rate hike at the December meeting from 89% before the data was released. There is now a 9% chance of a 75 basis point increase, down from 11% before the numbers.
All S&P 500 sector SPDR funds are quoted up in premarket trade with tech, consumer discretionary and communication services posting the biggest gains.
The U.S. 10-Year Treasury yield has hit a six-week low on the charts, and the U.S. dollar index has hit a 14-week low.
Regarding the PPI data, Robert Pavlik, senior portfolio manager at Dakota Wealth said, "The headline number is way better than expected, and the core number is again way better than expected. It's going to confirm people’s hopes that inflation is starting to turn the corner. It's going to give the market more confidence."
Here is a premarket snapshot taken shortly before 0900 EST:
FOR TUESDAY'S LIVE MARKETS' POSTS PRIOR TO 0900 EST/1400 GMT - CLICK HERE:
