OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH16 +0.35%) are up +0.28% and European stocks are up +0.11% as they mirror movements in oil prices which are up +0.86%. Global stocks were under pressure from Chinese economic concerns after China’s Shanghai Composite plunged -6.42% to a 13-1/2 month low. On the positive side, mining stocks rose as the price of gold (GCG16 +0.69%) climbed +0.59% to a 2-1/2 month high and copper prices (HGH16 +1.53%) rose +1.33% to a 2-week high. Signs of stronger Chinese demand is giving metals prices a boost after Chinese customs data showed China Dec imports of refined copper surged +34% y/y to 423,000 MT and China Dec gold imports from Hong Kong surged +67% from Nov to 111.3 MT. European stocks also gained as Siemens AG rose after it boosted its earnings forecast and Royal Philips NV jumped over 5% after it reported better-than-expected Q4 profit. Asian stocks settled lower: Japan -2.35%, Hong Kong -2.45%, China -6.42%, Taiwan -0.83%, Australia and India closed for holiday, Singapore -1.43%, South Korea -1.31%.
The dollar index (DXY00 +0.02%) is up +0.09%. EUR/USD (^EURUSD) is down -0.21%. USD/JPY (^USDJPY) is up +0.12%.
Mar T-note prices (ZNH16 +0.11%) are up +5 ticks on the heels of a rally in German bunds as the 10-year bund yield fell to a 4-3/4 month low of 0.432%.
The PBOC added 440 billion yuan ($67 billion) into the financial system via reverse-repurchase agreements, the most in 3 years, as it tries to keep borrowing costs down and boost liquidity ahead of the Chinese Lunar New Year holiday that begins Feb 8.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) the first day of the FOMC’s 2-day policy meeting, (2) Nov FHFA house price index (expected +0.5% m/m, Oct +0.5% m/m), (3) Nov S&P/CaseShiller composite-20 home price index (expected +0.80% m/m and +5.64% y/y, Oct +0.84% m/m and +5.54% y/y), (4) Jan Markit services PMI (expected -0.3 to 54.0, Dec -1.8 to 54.3), (5) Jan U.S. consumer confidence from the Conference Board (expected unch at 96.5, Dec +3.9 to 96.5), (6) Jan Richmond Fed manufacturing index (expected -4 to 2, Dec +9 to 6), and (7) the Treasury’s auction of $26 billion 2-year T-notes.
Leave A Comment