OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 +0.43%) this morning are up +0.33% on reduced interest rate concerns as the 10-year T-note yield falls below 2.90%. Also, increased M&A activity gave equities a boost after General Mills agreed to acquire Blue Buffalo Pet Products for about $8 billion. European stocks are down -0.03% due to losses in auto makers. The downside was limited for European stocks after the 10-year German bund yield fell to a 2-week low of 0.663%. Asian stocks settled higher: Japan +0.72%, Hong Kong +0.97%, China +0.63%, Taiwan +1.24%, Australia +0.82%, Singapore +1.28%, South Korea +1.49%, India +0.95%. China’s Shanghai Composite Stock Index climbed to a 2-week high in the second day of trade after it reopened following the week-long Lunar New Year holiday and Japanese stocks gained on reduced deflation concerns after the Japan Jan national CPI rose +1.4% y/y, the biggest increase in 2-3/4 years.

The dollar index (DXY00 +0.12%) is up +0.13%. EUR/USD (^EURUSD) is down -0.19%. USD/JPY (^USDJPY) is up +0.03%.

Mar 10-year T-note prices (ZNH18 +0.16%) are up +5 ticks.

The Japan Jan national CPI rose +1.4% y/y, stronger than expectations of +1.3% y/y and the biggest increase in 2-3/4 years. The Jan national CPI ex fresh food rose +0.9% y/y, stronger than expectations of +0.8% y/y. The Jan national CPI ex fresh food & energy rose +0.4% y/y, stronger than expectations of +0.3% y/y and the biggest increase in 17 months.

The Eurozone Jan CPI was left unrevised at +1.3% y/y and the Jan core CPI was left unrevised at +1.0% y/y.

The German Q4 GDP was left unrevised at +0.6% q/q and +2.9% y/y.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) USDA weekly Export Sales, (2) NY Fed President Dudley and Boston Fed President Rosengren appear on panel on Fed’s balance sheet at Chicago Booth School’s annual monetary policy symposium in New York, (3) Cleveland Fed President Loretta Mester (voter) and ECB Executive Board member Benoit Coeure participate in a panel discussion on a review of the objectives of monetary policy at the 2018 U.S. Monetary Policy Forum, (4) USDA Jan Cattle on Feed, (5) San Francisco Fed President Williams speaks on U.S. outlook for economy and monetary policy at the City Club of Los Angeles.