OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 +0.19%) this morning are down -1.16% at a 4-month low and European stocks are down -2.32% at an 11-month low as global stock markets slumped for a third day. The VIX volatility index soared to a 2-1/3 year high and spurred liquidation in equity markets around the world. Stronger-than-expected economic data out of Germany, however, on Dec factory orders and Jan Markit construction PMI, fueled short covering and the stocks are well above their overnight lows. The global rout in equity markets gave government debt prices a boost as the 10-year T-note yield fell to a 1-week low of 2.65%. Asian stocks settled lower: Japan -4,73%, Hong Kong -5.12%, China -3.35%, Taiwan -4.95%, Australia, Singapore -2.20%, South Korea -1.63%, India -1.61%. The slide in U.S. and European markets carried-over into Asia where China’s Shanghai Stock Index fell to a 1-month low and Japan’s Nikkei Stock Index tumbled to a 3-3/4 month low.

The dollar index (DXY00 +0.19%) is up +0.15%. EUR/USD (^EURUSD) is down -0.06%. USD/JPY (^USDJPY) is down -0.10%.

Mar 10-year T-note prices (ZNH18 +0.59%) are up +25.5 ticks at a 2-week high on increased safe-haven demand from the rout in global equity markets.

The German Jan Markit construction PMI rose +6.1 to 59.8, the fastest pace of expansion since the data series began in 2015.

German Dec factory orders rose +3.8% m/m, stronger than expectations of +0.7% m/m.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Dec trade deficit (expected -$52.0 billion, Nov -$50.5 billion), (2) Dec JOLTS job openings (expected +82,000 to 5.961 million, Nov -46,000 to 5.879 million), (3) Treasury auctions $26 billion 3-year T-notes.

Notable S&P 500 earnings reports today include: Disney (consensus $1.61), Allergan (4.74), Cummins (2.66), Gilead Sciences (1.67), S&P Global (1.61), GM (1.38), Chipotle (1.33), ADM (0.70), Emerson Electric (0.55).

U.S. IPO’s scheduled to price today: TFI TAB Gida Yatirimlari AS (TFIG), Bioceres (BIOX).