OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 -0.14%) this morning are down -0.09% and European stocks are down -0.19% led by a decline in bank stocks after Barclays fell over 3% when it said it set aside 750 million pounds ($1.2 billion) for the settlement of a currency-manipulation probe. Also, data from the Basel Committee on Banking Supervision said global banks are 305 billion euros ($341 billion) short of their liquidity coverage ratio (LCR). The Basel rule began to phase in Jan 1, when banks were required to have at least 60% of their liquidity buffers. The LCR takes full effect in 2019 when the LCR rises to 100%. The LCR was designed to require global banks have sufficient high-quality liquid assets to withstand a stressed 30-day funding scenario. Losses in European stocks are limited after German Jan retail sales posted the largest monthly increase in 7 years. Asian stocks closed mixed: Japan-0.06%, Hong Kong -0.74%, China -2.59%, Taiwan +0.05%, Australia -0.42%, Singapore +0.54%, South Korea +0.34%, India +0.46%. Chinese growth concerns undercut Asian stocks after the government-controlled Xinhua News Agency reported that Chinese Premier Li Keqiang will announce Thursday at the annual National People’s Congress a Chinese growth target of 7% for 2015, down from 7.5% in 2014. Commodity prices are mixed. Apr crude oil (CLJ15 +1.57%) is up +1.45% and Apr gasoline (RBJ15 +2.64%) is up +1.96%. Apr gold (GCJ15 +0.14%) is down -0.02%. May copper (HGK15 -1.48%) is down -1.58%. Agriculture prices are higher. The dollar index (DXY00 +0.08%) is up +0.05% at a new 11-1/3 year high. EUR/USD (^EURUSD) is down -0.21%. USD/JPY (^USDJPY) is down -0.22%. Jun T-note prices (ZNM15 -0.09%) are down -6 ticks at a 1-week low.
Eurozone Jan PPI fell -0.9% m/m and -3.4% y/y, weaker than expectations of -0.7% m/m and -3.0% y/y, with the -3.4% y/y drop the biggest year-over-year decline in 5 years.
