OVERNIGHT MARKETS AND NEWS
June E-mini S&Ps (ESM15 -0.44%) this morning are down -0.29% and European stocks are down -0.67% as weakness in energy producers drags the overall market lower after the price of crude oil slid to a fresh 6-years low. The markets are also on edge ahead of the outcome of the 2-day FOMC meeting later today where expectations are for the Fed to drop its reference to be “patient” with raising interest rates. The 10-year Greek bond yield rose to a 1-1/4 month high of 10.917% as the Greek government prepares emergency measures to raise cash for more than 2 billion euros in debt payments due on Friday. Asian stocks closed mostly higher: Japan +0.55%, Hong Kong +0.91%, China +2.37%, Taiwan +1.19%, Australia unch, Singapore-0.24%, South Korea +0.02%, India -0.40%. Japan’s Nikkei Stock Index soared to a 14-3/4 year high after Japan Feb exports climbed more than expected, a sign the weak yen is boosting Japanese exports. China’s Shanghai Stock Index rose over 2% to a 6-3/4 year high on speculation the government will expand stimulus to spur economic growth after China Feb new home property prices fell in 66 of the 70 cities tracked by the government, up from 64 in Jan. Commodity prices are mixed. Apr crude oil (CLJ15 -2.88%) is down -2.85% at a fresh 6 -year low ahead of today’s EIA inventory report where crude supplies are projected to increase +4.4 million bbl. Apr gasoline (RBJ15 -0.69%) is down -0.88%. Apr gold (GCJ15+0.13%) is up +0.11%. May copper (HGK15 -1.97%) is down -1.94% at a 3-week low after new home prices fell in China, which raises demand concerns. Agriculture prices are higher. The dollar index (DXY00 -0.06%) is down -0.13%. EUR/USD (^EURUSD) is up +0.26%. USD/JPY (^USDJPY) is down 0.16%. Jun T-note prices (ZNM15 +0.22%) are up +8 ticks at a 2-week high.
The Japan Feb trade balance shrank to a deficit of -424.6 billion yen, narrower than expectations of -986.6 billion yen and the smallest deficit in 20 months. Feb exports rose +2.4% y/y, stronger than expectations of +0.3%, and Feb imports unexpectedly fell -3.6% y/y, weaker than expectations of +3.2% y/y.
