OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 +0.39%) this morning are up +0.37% and European stocks are up +0.51%, both at 3-week highs, as market volatility recedes after the VIX volatility index fell to a 3-week low. Reduced interest rate concerns are also positive for equity prices after the 10-year T-note yield dropped to a 1-week low of 2.85%. The markets eagerly await Tuesday’s testimony to Congress from newly appointed Fed Chair Powell. Asian stocks settled higher: Japan +1.19%, Hong Kong +0.74%, China +1.23%, Taiwan +0.39%, Australia +0.71%, Singapore +0.64%, South Korea +0.17%, India +0.89%. Asian markets rallied on the heels of the rally in U.S. markets Friday as both China’s Shanghai Composite and Japan’s Nikkei Stock Index posted 2-week highs.

The dollar index (DXY00 +0.16%) is down -0.28%. EUR/USD (^EURUSD) is up +0.32%. USD/JPY (^USDJPY) is down -0.10%.

Mar 10-year T-note prices (ZNH18 +0.09%) are up +2 ticks at a 1-week high.

The Japan Dec leading index CI was revised lower to 107.4 from the originally reported 107.9. The Dec coincident index was revised lower to 120.2 from the originally reported 120.7, but still is the highest in 27-years.

China Jan new home prices rose +0.3% m/m and +5.0% y/y, weaker than the +0.4% m/m and +5.3% y/y increase from Dec.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Jan Chicago Fed national activity index (expected -0.07 to 0.20, Dec +0.16 to 0.27), (2) Jan new home sales (expected +3.6% to 648,000, Dec -9.3% to 625,000), (3) Feb Dallas Fed manufacturing activity (expected -3.4 to 30.0, Jan +3.7 to 33.4), (4) USDA weekly grain export inspections.

Notable S&P 500 earnings reports today include: SBA Communications (consensus $1.53), Scripps (1.18), ONEOK (0.53).

U.S. IPO’s scheduled to price today: Union Acquisition (LTN/U).

Equity conferences this week: Bank of America Merrill Lynch Animal Health Summit on Mon, GSMA Mobile World Congress on Mon, Morgan Stanley European MedTech & Services Conference on Mon, BMO Capital Markets Global Metals & Mining Conference on Mon-Tue, Morgan Stanley MLP Diversified Natural Gas, Utilities & Clean Tech Conference on Mon-Tue, JMP Securities Technology Conference on Mon-Tue, Morgan Stanley Technology, Media & Telecom Conference on Mon-Wed, J.P. Morgan Global High Yield & Leveraged Finance Conference on Tue, KeyBank Capital Markets Emerging Technology Summit on Tue, MUFG Securities REITs Corporate Access Day on Tue, Wolfe Research Smart Ideas Conference on Tue, Barclays MLP Conference on Tue, Simmons & Company International Energy Conference on Wed, Bank of America Merrill Lynch Global Agriculture and Chemicals Conference on Wed-Thu, Keefe, Bruyette, & Woods Cards, Payments & Financial Technology Symposium on Thu, Simmons Energy Conference – Panel on Thu.