Morning Call For Tuesday, March 7

OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH17 -0.18%) this morning are down -0.15% and European stocks are down -0.14% as weakness in metals prices undercuts mining stocks and raw-material producers. Apr gold (GCJ17 -0.09%) is down -0.15% at a 2-1/2 week low as expectations mount for a Fed rate hike at next week’s FOMC meeting, and May copper (HGK17 -0.57%) is down -0.60% at a 1-month low on signs of increased supplies amid weak demand after LME copper inventories jumped +26,725 MT to 261,975 MT, a 5-week high, and German factory orders plunged by the most in 8 years. Losses in stocks were contained after the OECD projected global growth will climb to 3.3% this year, up from 3.0% in 2016. Asian stocks settled mostly higher: Japan -0.18%, Hong Kong +0.36%, China +0.26%, Taiwan +0.57%, Australia +0.26%, Singapore +0.29%, South Korea +0.54%, India -0.17%. Chinese stocks rose on signs the government is taking steps to support the stock market as people familiar with the matter said China has banned net share sales by some large mutual funds to avoid net selling during the 2-week long meeting of the National People’s Congress in Beijing. China’s government has been known to intervene in markets during events of political importance.

The dollar index (DXY00 +0.13%) is up +0.13%. EUR/USD (^EURUSD) is down -0.08%. USD/JPY (^USDJPY) is up +0.03%.

Jun 10-year T-note prices (ZNM17 unch) are down -1 tick.

The Organization for Economic Cooperation and Development (OECD) projects global GDP to increase to 3.3% this year, up from +3.0% in 2016, but warned that “although risks may not materialize immediately, they remain a real possibility and a set of large shocks, possibly interacting with each other, would disrupt the recovery.”

German Jan factory orders slumped -7.4% m/m, weaker than expectations of -2.5% m/m and the biggest decline in 8 years.