OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 +0.07%) this morning are up +0.07% at a 3-week high and European stocks are up +1.97% at a 6-1/3 year high on positive carry-over from Thursday’s action by the ECB to unveil a 1.1 trillion euro quantitative-easing program. European stocks also received a boost on signs of economic strength after Eurozone manufacturing activity expanded at the fastest pace in 6 months. Asian stocks closed higher: Japan +1.05%, Hong Kong +1.34%, China +0.12%, Taiwan +1.08%, Australia +1.51%, Singapore +1.22%, South Korea +0.74%, India +0.94%. China’s Shanghai Stock Index posted a 5-1/3 year high on reduced economic concerns after a gauge of Chinese manufacturing activity unexpectedly rose. Commodity prices are mixed. Mar crude oil (CLH15 +0.71%) is up +1.55%. Mar gasoline (RBH15 +1.19%) is up +1.62%. Feb gold (GCG15 -0.18%) is down -0.42%. Mar copper (HGH15 -2.35%) is down -1.61%. Agriculture prices are mixed. The dollar index (DXY00 +1.27%) is up +0.92% at an 11-1/3 year high. EUR/USD (^EURUSD) is down -1.60% at an 11-year low. USD/JPY (^USDJPY) is down -0.49%. Mar T-note prices (ZNH15 +0.42%) are up +18 ticks on positive carry-over from a rally in European bond markets as the yield on the 10-year Italian bond dropped to a record low 1.413% and the German 10-year bund yield tumbled to a record low 0.359%.
The Eurozone Jan Markit manufacturing PMI rose +0.4 to 51.0, right on expectations and the fastest pace of expansion in 6 months. The Eurozone Jan Markit composite PMI rose +0.8 to 52.2, better than expectations of +0.3 to 51.7 and the fastest pace of expansion in 5 months.
The China Jan HSBC flash manufacturing PMI unexpectedly rose +0.2 to 49.8, better than expectations of -0.1 to 49.5.
The German Jan Markit/DME manufacturing PMI unexpectedly fell -0.3 to 51.0, weaker than expectations of +0.5 to 51.7.
UK Dec retail sales including autos rose +0.4% m/m and +4.3% y/y, better than expectations of -0.6% m/m and +3.0% y/y. Dec retail sales ex-autos rose +0.2% m/m and +4.2% y/y, stronger than expectations of -0.7% m/m and +3.4% y/y.
