Morning Call For Tuesday, Jan. 31

OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH17 -0.16%) are down -0.12%, led by weakness in energy producing stocks, with Mar WTI crude oil (CLH17 -0.19%) down -0.25% at a 1-week low. Crude prices are under pressure on expectations that tomorrow’s weekly EIA data will show U.S. crude inventories rose +3.0 million bbl. European stocks are up +0.20% on signs of strength in the European economy after Q4 Eurozone GDP expanded at a stronger-than-expected +1.8% y/y pace and the Dec Eurozone unemployment rate unexpectedly fell to a 7-1/2 year low of 9.6%. Asian stocks settled lower: Japan -1.69%, Australia -0.72%, Singapore -0.59%, South Korea -0.88%, India -0.70%, Hong Kong, China and Taiwan all closed for holiday. Japanese stocks closed lower as they followed Monday’s losses in U.S. and European equity markets. The BOJ, as expected, kept interest rates and its asset purchase target unchanged following today’s policy meeting.

The dollar index (DXY00 -0.45%) is down -0.29%. EUR/USD (^EURUSD) is up +0.63% after Eurozone Jan CPI rose more than expected at the fastest pace in 3-3/4 years and after President Trump’s trade advisor Navarro said that Germany is using a “grossly undervalued” euro to its trade advantage. USD/JPY (^USDJPY) is down -0.33%.

Mar 10-year T-note prices (ZNH17 +0.09%) are little changed, down -0.5 of a tick.

The Eurozone Dec unemployment rate unexpectedly fell -0.1 to 9.6%, better than expectations of no change at 9.8% and the lowest in 7-1/2 years.

The Eurozone Jan CPI estimate climbed +1.8% y/y, stronger than expectations of +1.5% y/y and the fastest pace of increase in 3-3/4 years. The Jan core CPI rose +0.9% y/y, right on expectations.

Eurozone Q4 GDP of +0.5% q/q and +1.8% y/y was slightly stronger than expectations of +0.5% q/q and +1.7% y/y.

Japan Dec industrial production rose +0.5% m/m, stronger than expectations of +0.3% m/m.