OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 -0.33%) this morning are down -0.29% and European stocks are down -1.64% ahead of u.s. Dec payrolls. European stocks were undercut after German Nov industrial output unexpectedly fell along with speculation an ECB stimulus plan will fail to shore up the economy. According to a person who attended a meeting of the Governing Council, the European Central Bank staff presented policy makers with models for buying as much as 500 billion euros ($591) billion of investment-grade assets, less than expectations, especially after ECB President Draghi talked of the ECB's “unlimited firepower.” Asian stocks closed mixed: Japan +0.18%, Hong Kong +0.35%, China -0.35%, Taiwan -0.24%, Australia +1.56%, Singapore -0.20%, South Korea +0.86%, India +0.67%. China's Shanghai Stock Index fell back from a 5-1/3 year high and closed lower on signs of a deeper economic slowdown after China Dec producer prices fell at the fastest pace in 2-1/4 years. Commodity prices are mixed. Feb crude oil (CLG15 -0.47%) is down -0.47%. Feb gasoline (RBG15 -0.28%) is down -0.09%. Feb gold (GCG15 +0.33%) is up +0.27%. Mar copper (HGH15 -0.72%) is down -0.78% at a 4-1/2 year low on signs of weak demand amid increasing supplies. German and UK Nov industrial production unexpectedly declined, while weekly Shanghai copper inventories climbed +751 MT to an 8-1/2 month high of 112,666 MT and LME copper inventories surged +8,250 MT to a 7-3/4 month high of 187,475 MT. Agriculture prices are mixed. The dollar index (DXY00 -0.26%) is down -0.29%. EUR/USD (^EURUSD) is up +0.17%. USD/JPY (^USDJPY) is down -0.35%. Mar T-note prices (ZNH15 +0.11%) are up +4 ticks.
China Dec CPI rose +1.5% y/y, right on expectations. Dec PPI fell -3.3% y/y, a larger decrease than expectations of -3.1% y/y and the fastest pace of decline in 2-1/4 years.
