OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 +0.21%) this morning are up +0.22% at a 1-week high and European stocks are up +0.15% at a 4-month high ahead of the ECB decision later today in which the central bank is expected to announce an asset-purchase program. The market expects the ECB to commit to a quantitative-easing program that may exceed 1 trillion euros, and if the amount is smaller or if the ECB fails to give full details of the program, equity markets may be disappointed. Russia’s Micex Stock Index soared over 3% to a 3-1/3 year high today as the prospects for additional ECB stimulus prompts investors to seek out risk and higher returns, which boosts the appeal of Russian stocks. Bank of America also recommended that investors “reduce short positions in Russia going into the ECB meeting as Russia may be, counterintuitively, the main beneficiary of credible quantitative easing.” Asian stocks closed mostly higher: Japan +0.28%, Hong Kong +0.70%, China +0.53%, Taiwan +0.53%, Australia +0.49%, Singapore +0.47%, South Korea -0.05%, India +0.41%. Chinese stocks received a boost after the PBOC conducted its first reverse-repurchase operation this year, adding money to the financial system, after it said it rolled over a 269.5 billion yuan ($43.4 billion) lending facility to banks ahead of next month’s Chinese New Year holiday. Commodity prices are mixed. Mar crude oil (CLH15 +2.43%) is up +1.42%. Mar gasoline (RBH15 +2.01%) is up +1.27%. Feb gold (GCG15-0.94%) is down -0.51%. Mar copper (HGH15 -1.03%) is down -0.86%. Agriculture prices are higher. The dollar index (DXY00 -0.38%) is down -0.36%. EUR/USD (^EURUSD) is up +0.24%. USD/JPY (^USDJPY) is down -0.28%. Mar T-note prices (ZNH15 -0.34%) are down -13 ticks at a 1-week low.
The UK Jan CBI trends total orders unexpectedly fell -1 to 4, weaker then expectations of unchanged at 5. The Jan CBI trends selling prices fell -13 to -6, the lowest in 5 years. Jan CBI business optimism rose +7 to 15.
