OVERNIGHT MARKETS AND NEWS
March E-mini S&Ps (ESH16 -0.86%) are down -0.40% and European stocks are down -0.59% at a 2-1/3 year low as global economic concerns intensified after German Dec industrial production unexpectedly fell by the most in 16 months and as Greece's ASE Stock Index fell to the lowest since 1990. Greek debt concerns resurfaced as the Greek government remains at odds with creditors as bailout talks drag on. Greek bank stocks plunged after representatives from the IMF, the European Commission, the ECB and the European Stability Mechanism left Athens after a week of talks that failed to find an agreement for additional Greek bailout funds. Estimate are that Greece may face a cash crunch by the middle of the year if it fails to find more funding with 3 billion euros of redemptions and interest payments due in July. Concerns over European banks abated slightly after Goldman Sachs said that European banks have “ample liquidity” and after Deutsche Bank AG rose over 1% when it said it has enough cash to pay its debts. Asian stocks settled lower: Japan -5.40%, Australia -2.86%, India -1.10% with Hong Kong, China, Taiwan, Singapore and South Korea all closed for holiday. Japan's Nikkei Stock Index fell to a 2-week low as exporters slid after the yen jumped to a 14-3/4 month high against the dollar. The plunge in Japanese stocks fueled safe-haven buying of government debt and pushed the yield on Japan's 10-year bond down to a record low of -0.035%.
The dollar index (DXY00 -0.07%) is down -0.12%. EUR/USD (^EURUSD) is up +0.26%. USD/JPY (^USDJPY) is down -0.72% at a 14-3/4 month low.
Mar T-note prices (ZNH16 unch) are down -6 ticks.
German Dec industrial production unexpectedly fell -1.2% m/m, weaker than expectations of +0.5% m/m and the biggest decline in 16 months.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Dec JOLTS job openings (expected +19,000 to 5.450 million, Nov +82,000 to 5.431 million), (2) Dec wholesale inventories (expected -0.2% m/m, Nov -0.3% m/m) and (3) the Treasury's auction of $24 billion of 3-year T-notes.
