OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 -0.45%) this morning are down -0.51% after two days of gains. Losses in energy stocks are leading the overall market lower with Mar WTI crude oil (CLH18 -0.39%) down -0.54% after the International Energy Agency (IEA) warned that increased U.S. shale-oil production may counter OPEC crude production cuts. European stocks are down -0.67% as exporter stocks retreated due to strength in EUR/USD, which undercuts their earnings prospects. Asian stocks settled mostly higher: Japan -0.65%, Hong Kong +1.29%, China +0.98%, Taiwan, and India closed for holiday, Australia +0.60%, Singapore +0.89%, South Korea +0.89%. Most Asian bourses moved higher today on carry-over support from gains in U.S. stocks Monday, although Japan’s Nikkei Stock Index erased its gains and closed lower after USD/JPY (^USDJPY) sank to a 5-month low and undercut Japanese exporters.

The dollar index (DXY00 -0.58%) is down -0.51. EUR/USD (^EURUSD) is up +0.41. USD/JPY (^USDJPY) is down -0.97% at a 5-month low.

Mar 10-year T-note prices (ZNH18 +0.16%) are up +5.5 ticks.

Japan Jan PPI of +0.3% m/m and +2.7% y/y was slightly weaker than expectations of +0.3% m/m and +2.8% y/y with the +2.7% y/y gain the smallest year-on-year increase in 6-months.

UK Jan CPI of -0.5% m/m and +3.0 y/y was stronger than expectations of -0.6% m/m and +2.9% y/y. Jan core CPI rose +2.7% y/y, stronger than expectations of +2.6% y/y.

The UK Dec house price index rose +5.2% y/y, stronger than expectations of +4.9% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Cleveland Fed President Loretta Mester (voter) discusses monetary policy and the economic outlook at the Dayton Area Chamber of Commerce Government Affairs breakfast.

Notable S&P 500 earnings reports today include: MetLife (consensus $0.87), Martin Marietta Materials (1.48), PepsiCo (1.31), HCP (0.47), Western Union (0.45), Occidental Petroleum (0.40), Under Armour (0.00).

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