Mar E-mini S&Ps this morning (ESH18 -0.28%) are down -0.29% on concern about the implications of U.S. tariffs on the global economy. European stocks are up +0.33% after Germany’s Social Democrats voted by 66% in favor to join Chancellor Merkel’s Christian Democrats in a coalition government, higher than expectations of only 60% support. Gains in European markets were limited on increased political risks in Italy after Sunday’s elections left the direction of the Italian government in gridlock with no clear winner. Another negative for European stocks was the larger-than-expected decline in the Eurozone Mar Sentix investor confidence to an 11-month low. Political concerns fueled losses in Italian government bonds but boosted the safe-haven demand for German 10-year bunds which rallied to a 5-week high. Asian stocks settled mostly lower: Japan -0.66%, Hong Kong -2.28%, China +0.07%, Taiwan -0.52%, Australia -0.57%, Singapore -1.17%, South Korea -1.22%, India -0.88%. Losses in Asian metals producers led markets lower there with Japan’s Nikkei Stock Index falling to a 4-3/4 month low. China’s Shanghai Composite closed slightly higher after Chinese Premier Li Keqiang promised more market reforms and reiterated China’s 2018 growth target “at around 6.5%.”

The dollar index (DXY00 +0.19%) is up +0.15. EUR/USD (^EURUSD) fell back from 2-1/2 week high and is down -0.14% on Italian political concerns. USD/JPY (^USDJPY) is down -0.10%.

Jun 10-year T-note prices (ZNM18 +0.09%) are up +3.5 ticks.

The Eurozone Mar Sentix investor confidence fell -7.9 to an 11-month low of 24.0, weaker than expectations of -1.0 to 30.9.

The Eurozone Feb Markit composite PMI was revised lower to 57.1 from the previously reported 57.5, the slowest pace of expansion in 4-months.

Eurozone Jan retail sales fell -0.1% m/m, right on expectations.

The China Feb Caixin services PMI fell -0.5 to 54.2, weaker than expectations of -0.4 to 54.3.

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