Overnight Markets And News

Jun E-mini S&Ps (ESM18 +0.29%) this morning are up +0.05% and European stocks are down -0.68% as weakness in technology stocks drags down global stock indexes. Weakness in energy stocks is another negative for the overall market with May WTI crude oil (CLK18 -0.57%) down -0.67% on concern a global supply glut may persist after API data late Tuesday showed U.S. crude stockpiles rose +5.32 million bbl last week. The slide in stocks has benefited government bond markets as flight-to-safety demand has pushed the 10-year German bund yield down to a 2-1/2 month low of 0.473% and pushed the 10-year T-note yield down to a 1-1/2 month low of 2.74%. Asian stocks settled lower: Japan -1.34%, Hong Kong -2.50%, China -1.40%, Taiwan -1.10%, Australia -0.73%, Singapore -1.64%, South Korea -1.43%, India -0.62%. Asian equity markets followed U.S. markets lower as losses in technology stocks spread across the globe.

The dollar index (DXY00 +0.10%) is up +0.16%. EUR/USD (^EURUSD -0.01%) is down -0.09%. USD/JPY (^USDJPY+0.58%) is up +0.52%, despite losses in global equity markets, as China said North Korea would be willing to give up its nuclear arsenal after North Korean leader Kim Jong Un made a surprise visit to Beijing to meet with Chinese President Xi Jinping, which reduced the safe-haven demand for the yen.

Jun 10-year T-note prices (ZNM18 +0-050) are up +7 ticks at a 1-1/2 month high.

UK Mar CBI retailing reported sales fell -16 to a 5-month low of -8, weaker than expectations of -1 to 7.

German Apr GfK consumer confidence unexpectedly rose +0.1 to 10.9, stronger than expectations of -0.1 to 10.7.

U.S. Stock Preview

Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -1.1% with purchase sub-index +1.4% and refi sub-index -4.5%), (2) revised Q4 GDP (expected +2.7%, previous +2.5%), (3) Feb wholesale inventories (expected +0.5%, Jan +0.8% m/m), (4) Feb pending home sales (expected +2.0% m/m, Jan -4.7% m/m and -1.7% y/y), (5) EIA weekly Petroleum Status Report, (6) Treasury auctions $15 billion 2-year floating-rate notes and $29 billion of 7-year T-notes, (7) Atlanta Fed President Raphael Bostic (voter) speaks to the Atlanta Society of Finance and Investment Professionals.

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