OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 -0.20%) this morning are down -0.20% as they consolidate Friday’s rally to an all-time high, while European stocks are up +0.26% at a 6-1/2 year high after Greece received a 4-month extension on its bailout. The Greek government has until the end of the day today to complete a list of policies in return for continued funding. The Eurozone finance ministers will then meet and decide whether the Greek policies go far enough or trigger another round of emergency negotiations this week. European stocks fell back from their best levels after the German Feb IFO business confidence rose less than expected. The extension of bailout funds to Greece also fueled a rally in Italian and Portuguese government bonds that sent their yields falling to record lows. Asian stocks closed mixed: Japan +0.73%, Australia +0.45%, Singapore -0.42%, South Korea +0.17%, India-0.88%, China and Taiwan closed for holiday. Japan’s Nikkei Stock Index rose to a 14-3/4 year high as the positive news on a Greek debt deal lifted most global stocks. Commodity prices are mostly lower. Apr crude oil (CLJ15 -3.01%) is down -2.40% at a 1-week low and Apr gasoline (RBJ15 -0.91%) is down -0.85%. Apr gold (GCJ15 -0.79%) is down -0.87%. Mar copper (HGH15 -0.64%) is down -0.79%. Agriculture prices are mixed. The dollar index (DXY00 +0.52%) is up +0.56% at a 1-week high on speculation that Fed Chair Yellen’s testimony to Congress tomorrow will be dollar supportive. EUR/USD (^EURUSD) is down -0.60%. USD/JPY (^USDJPY) is unchanged. Mar T-note prices (ZNH15 +0.12%) are up +3.5 ticks.
The German Feb IFO business climate rose +0.1 to 106.8, less than expectations of +1.0 to 107.7 but still the highest in 7 months. The Feb IFO current assessment unexpectedly fell -0.4 to 111.3, weaker than expectations of +0.8 to 112.5. The Feb IFO expectations rose +0.5 to 102.5, less than expectations of +1.0 to 103.0.
