OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 -0.38%) this morning are down -0.17% and European stocks are down -0.21% on reduced expectations that the ECB will announce a large-scale bond-buying program when it meets tomorrow after ECB Governing Council member Nowotny said “one should not get overexcited” about one policy meeting. Asian stocks closed mostly higher: Japan -0.49%, Hong Kong +1.68%, China +4.50%, Taiwan +0.74%, Australia +1.61%, Singapore +0.61%, South Korea +0.55%, India +0.36%. Commodity prices are mixed. Mar crude oil (CLH15 +0.52%) is up +0.45%. Mar gasoline (RBH15 +0.84%) is up +0.85%. Feb gold (GCG15 +0.43%) is up +0.22% at a 5-1/4 month high on speculation slowing global growth will prompt central banks to boost stimulus. Mar copper (HGH15 -2.35%) is down -1.83%. Agriculture prices are higher. The dollar index (DXY00 -0.36%) is down -0.34%. EUR/USD (^EURUSD) is up +0.23% on hawkish comments from ECB Governing Council member Nowotny. USD/JPY (^USDJPY) is down -1.06% after the BOJ failed to boost stimulus and retained its plan to increase the monetary base at an annual pace of 80 trillion yen. The BOJ, however, did cut its inflation forecast for the fiscal year starting in April to 1.0% from 1.7% previously. Mar T-note prices (ZNH15 +0.05%) are down -1tick.
The minutes of the Jan 7-8Â BOE policy meeting showed that the two BOE policy makers who pushed for an interest rate increase dropped their call for rate hikes this month on the risk of “inflation persisting below the target for longer than previously expected.”
UK Dec jobless claims fell -29,700, a larger decline than expectations of -25,000 and the biggest drop in 4 months. The Dec claimant count rate fell -0.1to 2.6%, right on expectations and the lowest in 6-1/2 years.
UK Nov avg weekly earnings rose +1.7% 3-mo avg, right on expectations. Nov avg weekly earnings ex-bonus rose +1.8% 3-mo avg, less than expectations of +1.9% 3-mo avg.
