OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 -0.56%) this morning are down -0.30% and European stocks are down -0.04% after the World Bank cut its global growth outlook for this year. A slide in commodity producers is leading the overall market lower after the price of copper plunged to a 5-1/2 year low. European stocks recovered from their worst levels after an aide to the EU’s top court said a bond-buying program by the ECB is “in principle” in line with European Union treaties. Asian stocks closed lower: Japan -1.71%, Hong Kong -0.43%, China -0.33%, Taiwan -0.56%, Australia -0.95%, Singapore -0.45%, South Korea -0.12%, India -0.29%. Commodity prices are lower on demand concerns after the World Bank cut its global GDP forecast. Feb crude oil (CLG15 -0.31%) is down -0.04%. Feb gasoline (RBG15 -0.41%) is down -0.24%. Feb gold (GCG15 -0.36%) is down -0.48%. Mar copper (HGH15-5.30%) is down -5.12% at a 5-1/2 year low. Agriculture prices are weaker with Mar corn and Mar soybeans at 1-1/4 month lows and Mar wheat at a 1-3/4 month low. The dollar index (DXY00 unch) is down -0.03%. EUR/USD (^EURUSD) is down -0.14% at a 9-year low after an aide to the EU’s top court gave a green light to the ECB’s bond-buying program. USD/JPY (^USDJPY) is down -0.81%. Mar T-note prices (ZNH15 +0.11%) are up +4 ticks.
The World Bank cut its 2015 global GDP forecast to 3.0%, down from a 3.4% estimate in Jun, saying risks to the global economy are “significant and tilted to the downside.” The World Bank lowered its 2015 Eurozone GDP forecast to 1.1% from a Jun estimate of 1.8% and cut its 2015 China GDP estimate to 7.1% from 7.5%, but upgraded its 2015 U.S GDP projection to 3.2% from 3.0%.
A senior adviser at the European Union’s highest appeals court said the ECB’s Outright Monetary Transactions (OMTs) bond-buying program is “compatible” with European Union treaties. Germany’s top court had expressed doubts about the legality of the OMT program and this legal endorsement paves the way for the ECB to implement additional bond buying when it meets on Jan 22.
