OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 -0.69%) this morning are down -0.63% and European stocks are down -0.10% on Eurozone deflation concerns after Jan Eurozone consumer prices fell a more-than-expected -0.6% y/y and matched the largest decline since the euro currency was introduced in 1999. Losses in European stocks were limited after the Eurozone Dec unemployment rate unexpectedly declined to the lowest in 28 months. The Russian ruble tumbled to a 1-1/2 month low against the dollar after Russia’s central bank cut the 1-week auction rate to 15% from 17%. Credit-default swaps on Russia’s government debt rose 3 bp to 617 bp, the highest since March 2009. Asian stocks closed mixed: Japan +0.39%, Hong Kong -0.36%, China -1.36%, Taiwan -0.69%, Australia +0.34%, Singapore -0.81%, South Korea -0.23%, India -1.68%. China’s Shanghai Stock Index fell to a 1-1/2 week low as government regulators begin efforts to cool the growth of margin trading. Commodity prices are mostly higher. Mar crude oil (CLH15 +0.97%) is up +1.32%. Mar gasoline (RBH15 +0.34%) is up +0.30%. Feb gold (GCG15 +0.66%) is up +0.71%. Mar copper (HGH15 +1.16%) is up +1.04%. Agriculture prices are higher. The dollar index (DXY00 -0.26%) is down -0.35%. EUR/USD (^EURUSD) is up +0.23%. USD/JPY (^USDJPY) is down -0.52%. Mar T-note prices (ZNH15 +0.23%) are up +9.5 ticks.
The Eurozone Jan CPI estimate fell -0.6% y/y, a bigger decline than expectations of -0.5% y/y and matched the July 2009 decrease as the biggest drop since the euro currency was introduced in 1999. The Jan core CPI rose +0.6% y/y, less than expectations of +0.7% y/y and the slowest pace of increase since the data series began in 1997.
The Eurozone Dec unemployment rate unexpectedly fell -0.1 to 11.4%, better than expectations of unch at 11.5% and the lowest in 28 months.
German Dec retail sales rose +0.2% m/m, less than expectations of +0.3% m/m, but on an annual basis rose +4.0% y/y, more than expectations of +3.6% y/y and the largest annual increase in 2-1/2 years.
