OVERNIGHT MARKETS AND NEWS
The dollar index (DXY00 +0.21%) is up +0.12% at a 1-1/2 month high on expectations for more hawkish testimony today from Fed Chair Powell. EUR/USD (^EURUSD) is down -0.10% at a 1-1/2 month low. USD/JPY (^USDJPY) is up +0.01%.
Jun 10-year T-note prices (ZNM18 +0.27%) are up +9 ticks.
The China Feb Caixin (flash) manufacturing PMI unexpectedly rose +0.1 to a 6-month high of 51.6, stronger than expectations of -0.2 to 51.3.
The Eurozone Jan unemployment rate was unch at a 9-year low of 8.6%, right on expectations.
The Eurozone Feb Markit manufacturing PMI was revised upward to 58.6 from the previously reported 58.5.
The German Markit/BME manufacturing PMI was revised higher to 60.6 from the previously reported 60.3.
Japan Feb consumer confidence unexpectedly fell -0.4 to a 5-month low of 44.3, weaker than expectations of +0.1 to 44.8.
Japan Q4 capital spending rose +4.3% y/y, stronger than expectations of +3.0% y/y. Q4 capital spending ex-software rose +4.7% y/y, stronger than expectations of +2.7% y/y.
u.s. STOCK PREVIEW
Key U.S. news today includes: (1) weekly initial unemployment claims (expected +3,000 to 225,000) vs. previous -7,000 to 222,000 and weekly continuing claims (expected +50,000 to 1.925 million) vs. previous -73,000 to 1.875 million, (2) Jan personal spending (expected +0.2%) vs. Dec +0.4%, (3) Jan personal income (expected +0.3%) vs. Dec +0.4%, (4) Jan PCE deflator (expected +0.4% m/m and +1.7% y/y) vs. Dec +0.1% m/m and +1.7% y/y, (5) Jan core PCE deflator (expected +0.3% m/m and +1.5% y/y) vs.Dec +0.2% m/m and +1.5% y/y, (6) revised-Feb Markit manufacturing PMI (expected -0.1 to 55.8) vs. prelim-Feb +0.4 to 55.9, (7) Fed Chair Powell testifies on Fed's semi-annual monetary report to Congress before the Senate Banking Committee, (8) Jan construction spending( expected +0.3%) vs. Dec +0.7%, (9) Feb ISM manufacturing index (expected -0.5 to 58.6) vs. Jan -0.2 to 59.1 and Feb ISM prices paid (expected -2.7 to 70.0) vs. Jan +4.3 to 72.7, (10) Feb total vehicle sales (expected 17.15 million) vs. Jan 17.07 million. Feb domestic vehicle sales (expected 13.30 million) vs. Jan 13.10 million.
