OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH15 +0.23%) this morning are up +0.28% and European stocks are up +0.84% as energy producers rose after the price of crude oil stabilized. The Russian ruble rallied up to a 1-week high against the dollar while yields on Spanish and Portuguese 10-year government bonds fell to record lows. Asian stocks closed higher: Japan +0.08%, Hong Kong +1.26%, China +0.33%, Taiwan +1.06%, Australia +1.94%, Singapore +1.57%, South Korea +0.70%, India +1.21%. China's Shanghai Composite Index climbed to a 4-3/4 year high on expectations for China to expand stimulus measures and Japan's Nikkei Stock Index rose to a 1-1/2 week high as exporter stocks rallied after the yen fell to a 1-week low against the dollar. Commodity prices are mixed. Feb crude oil (CLG15 -0.79%) is down -0.09%. Feb gasoline (RBG15 -0.19%) is up +0.49%. Feb gold (GCG15 +0.06%) is up +0.05%. Mar copper (HGH15 +0.23%) is up +0.54%. Agriculture prices are mixed. The dollar index (DXY00 -0.14%) is down -0.09%. EUR/USD (^EURUSD) is up +0.25%. USD/JPY (^USDJPY) is up +0.21% at a 1-week high. Mar T-note prices (ZNH15 -0.05%) are down -1 tick.
ECB Vice President Constancio said that he sees a negative inflation rate in coming months and that the ECB must use all monetary policy instruments to prevent a “dangerous vicious circle of declining prices, rising real wage costs, falling profits, shrinking demand and further declining prices.”
The German Nov import price index fell -0.8% m/m, more than expectations of -0.7% m/m and the biggest monthly decline in 19 months. On an annual basis. Nov import prices fell -2.1%, a bigger drop than expectations of -1.9% and the fastest pace of decline in 7 months.
u.s. STOCK PREVIEW
Today's Nov existing home sales report is expected to show a -1.1% decline to 5.20 million, reversing most of October's +1.5% increase to 5.26 million. The Treasury today will sell $27 billion of 2-year T-notes. There are 2 of the Russell 3000 companies that report earnings today: Steelcase (consensus $0.26), Ohr Pharma (-0.13). There are no equity conferences this week.
