OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 +0.56%) this morning are up +0.61% ahead of the outcome of today’s FOMC meeting, while European stocks are down-0.92%, led by a decline in bank stocks on concern of their exposure to Russian debt. The Russian ruble has stabilized temporarily near 66 per dollar, above yesterday’s record low of near 80 per dollar, after Russian Economy Minister Ulyukayev denied speculation the government would impose restrictions to stop Russians from converting rubles into dollars. The ruble has plunged 52% against the dollar so far this year as the weight of international economic sanctions along with the plunge in crude to a 5-1/2 year low has decimated the ruble. Asian stocks closed mixed: Japan +0.38%, Hong Kong -0.37%, China +1.73%, Taiwan -1.37%, Australia +0.18%, Singapore +0.38%, South Korea -0.29%, India -0.27%. Chinese stocks closed higher and received a boost on speculation the government will expand stimulus after the PBOC rolled over a portion of a 3-month lending facility from September that was set to expire. Commodity prices are mixed. Jan crude oil (CLF15 -2.50%) is down -1.70% after Russian Energy Minister Novak said that the price of crude oil “will stabilize itself” and Russia will not cut crude production and will keep output steady near the current 10.6 million bpd. Jan gasoline (RBF15 -1.18%) is down -0.91%. Feb gold (GCG15 +0.39%) is up +0.54%. Mar copper (HGH15 -0.89%) is down -0.93% at a 2-week low. Agriculture prices are mixed. The dollar index (DXY00 +0.16%) is up +0.17%. EUR/USD (^EURUSD) is down -0.43%. USD/JPY (^USDJPY) is up +0.63%. Mar T-note prices (ZNH15 -0.17%) are down -5 ticks.
ECB Executive Board member Coeure said in an interview with the L’Opinion newspaper that “there is a broad consensus in the ECB Governing Council to do more and we are now discussing the instruments to use.”
