OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 +1.15%) this morning are up +1.06% and European stocks are up +2.35% as energy producers gained as crude oil rallied and on carry-over support from yesterday’s FOMC meeting where the Fed pledged patience on raising interest rates. European stocks also received a boost after German investor confidence rose for a second month to a 4-month high. European government bonds rose after the Swiss National Bank (SNB) introduced negative interest rates for the first time since the 1970s as the Russian financial crisis and the threat of further ECB stimulus pressured the Swiss franc. Asian stocks closed mostly higher: Japan +2.32%, Hong Kong +1.09%, China -0.44%, Taiwan +0.57%, Australia +0.95%, Singapore +0.51%, South Korea +0.04%, India +1.56%. Commodity prices are higher. Jan crude oil (CLF15 +3.22%) is up +2.32% Jan gasoline (RBF15 +3.23%) is up +2.59%. Feb gold (GCG15 +0.95%) is up +1.05%. Mar copper (HGH15 -0.05%) is up +0.35%. Agriculture prices are stronger with Mar corn at a 5-1/2 month high and Mar wheat at a 6-3/4 month high. The dollar index (DXY00 -0.01%) is down -0.10%. EUR/USD (^EURUSD) is down -0.28% at a 1-week low as the action by the SNB to introduce negative interest rates that applies on the same date as the next ECB meeting boosted speculation the ECB will expand stimulus. USD/JPY (^USDJPY) is down -0.02%. Mar T-note prices (ZNH15 -0.21%) are down -7.5 ticks.
The German Dec IFO business climate rose +0.8 to 105.5, right on expectations and the highest in 4 months. The Dec IFO current assessment was unchanged at 110.0, weaker than expectations of +0.4 to 110.4. The Dec IFO expectations rose +1.3 to 101.1, better than expectations of +0.8 to 100.5.
The Swiss National Bank (SNB) imposed a negative interest rate of -0.25% on slight deposit account balances at the SNB that will apply as of Jan 22, The SNB also expanded the target range for the 3-month Libor to -0.75% to 0.25%.
