OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 +0.11%) this morning are down -0.57% and European stocks are up +0.21%. The unexpected decision by the Swiss National Bank (SNB) to abandon the Swiss franc’s cap against the euro roiled currency markets and sent Switzerland’s SMI Stock Index down to a 2-3/4 month low. The franc surged as much as 27% against the dollar and soared to a record against the euro after the SNB unexpectedly ended its 3-year minimum exchange rate of 1.20 franc per euro. The move by the SNB comes one week before the ECB meeting where the ECB may implement QE, a move that may add to pressure on the franc against the euro. Asian stocks closed mixed: Japan +1.86%, Hong Kong +0.99%, China +2.90%, Taiwan-0.16%, Australia -0.42%, Singapore +0.38%, South Korea -0.09%, India +2.66%. India’s Sensex Stock Index soared over 2% to a 5-week high after the Reserve Bank of India unexpectedly cut interest rates. Commodity prices are mixed. Feb crude oil (CLG15 +1.42%) is down -0.45%. Feb gasoline (RBG15 -0.04%) is down -1.46%. Feb gold (GCG15 +1.25%) is up +1.73% at a 2-3/4 month high on increased safe-haven demand after the move by the SNB to abandon its minimum exchange rate against the euro roiled currency markets. Mar copper (HGH15 +2.51%) is up +1.84%. Agriculture prices are higher. The dollar index (DXY00 -0.45%) is down -0.39%. EUR/USD (^EURUSD) is down -0.70% at an 11-year low. USD/JPY (^USDJPY) is down-0.73%. Mar T-note prices (ZNH15 +0.06%) are up +9.5 ticks.
The Swiss National Bank unexpectedly ended its 3-year minimum exchange rate of 1.20 franc per euro and moved the target range for the 3-month Libor to between -1.25% and -0.25% from the current range of between -0.75% and 0.25%. The Swiss franc soared to a record 85.17 centimes per euro after the action and sent the Swiss Market Index tumbling 11% to a 2-3/4 month low.
