Morning Call For Tuesday, March 20

Overnight Markets and News

Jun E-mini S&Ps (ESM18 +0.15%) this morning are up +0.06% as a +1.03% rally in May WTI crude oil (CLK18 +1.30%) lifts energy stocks. Pressure remains on technology stocks, though, following Monday’s sell-off with Oracle down 8% in pre-market trading after it reported Q3 cloud revenue that missed estimates. Also, trade concerns remain forefront after the White House late Monday said it plans to impose tariffs worth as much as $60 billion on Chinese products as part of a battle over safeguarding intellectual property. European stocks are up +0.14% on strength in energy stocks, although gains were limited after a gauge of German investor confidence tumbled as the German Mar ZEW expectations of economic growth fell -12.7 to a 1-1/2 year low of 5.1. Asian stocks settled mixed: Japan -0.47%, Hong Kong +0.11%, China +0.35%, Taiwan -0.33%, Australia -0.39%, Singapore +0.43%, South Korea +0.45%, India +0.22%. China’s Shanghai Composite erased early losses and closed higher after Chinese health-care stocks soared when Premier Li Keqiang, speaking at China’s National People’s Congress, said China will increase fiscal support for basic medical insurance and medical resources to cover more people. Japan’s Nikkei Stock Index fell to a 1-1/2 week low, led by losses in technology stocks, following Monday’s rout of technology stocks in the U.S.

The dollar index (DXY00 +0.37%) is up +0.33%. EUR/USD (^EURUSD -0.20%) is down -0.22%. USD/JPY (^USDJPY +0.40%) is up +0.33%.

Jun 10-year T-note prices (ZNM18 -0-060) are down -5.5 ticks.

The German Mar ZEW expectations of economic growth fell -12.7 to a 1-1/2 year low of 5.1, weaker than expectations of -4.8 to 13.0.

The German Feb PPI of -0.1% m/m and +1.8% y/y was weaker than expectations of +0.1% m/m and +2.0% y/y with the +1.8% y/y gain the smallest year-on-year increase in 14-months.

UK Feb CPI of +0.4% m/m and +2.7% y/y was weaker than expectations of +0.5% m/m and +2.8% y/y. Feb core CPI rose +2.4% y/y, weaker than expectations of +2.5% y/y and the smallest pace of increase in 7 months.