OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 +0.85%) are up +0.87% and European stocks are up +0.31% as technology stocks rose with Apple up over 1% in pre-market trading and Ericsson AG up 7% after Apple settled a patent dispute with Ericsson AB and agreed to a 7-year licensing agreement with the company. Also, Disney rose nearly 2% in pre-market trading after its “Star Wars: The Force Awakens” movie collected a record $238 million in weekend ticket sales in the U.S. and Canada. On the negative side, Spain’s benchmark IBEX 35 Stock Index is down more than 2% and the yield on the 10-year Spanish government bond jumped to a 5-week high of 1.88% after Prime Minister Rajoy lost his majority in Sunday’s election, which threatens Spain with a period of instability. Asian stocks settled mostly higher: Japan -0.37%, Hong Kong +0.17%, China +1.77%, Taiwan +0.30%, Australia +0.05%, Singapore -0.26%, South Korea +0.31%, India +0.85%. China’s Shanghai Composite rallied to a 3-week high on signs the government may boost stimulus measures after a statement from the government’s Central Economic Work Conference said that monetary policy must be more “flexible” and that the country’s fiscal policy must be more “forceful” as leaders create “appropriate monetary conditions for structural reforms.”

The dollar index (DXY00 +0.07%) is up +0.05%. EUR/USD (^EURUSD) is down -0.04%. USD/JPY (^USDJPY) is up +0.19%.

Mar T-note prices (ZNH16 -0.04%) are down -2 ticks.

ECB Executive Board member Praet said that “seeping pessimism” is a key risk for Eurozone prospects in coming years and that the ECB “will pursue an accommodative monetary policy for as long as necessary.”

The German Nov PPI that fell -0.2% m/m and -2.5% y/y was weaker than expectations of -0.2% m/m and -2.4% y/y with the -2.5% y/y drop the largest annual decline in 5-3/4 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Nov Chicago Fed national activity index (expected +0.14 to 0.10, Oct +0.25 to -0.04).

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