OVERNIGHT MARKETS AND NEWS

March E-mini S&Ps (ESH16 +0.88%) are up +0.74% and European stocks are up +1.04% at a 3-1/2 week high on expectations that global central banks will increase stimulus to spur economic growth. New York Fed President Dudley said that he is “somewhat less confident” that inflation will reach the Fed’s target as “downside risks have crept up.” His comments signal the Fed may wait further before they raise interest rates again. European stocks also found support after the Eurozone Jan unemployment rate unexpectedly fell to the lowest in more than 4 years. Global stocks shrugged off the negative Chinese economic data that showed the China Feb manufacturing PMI contracted at its steepest pace in 7 years. Asian stocks settled higher: Japan +0.37%, Hong Kong +1.55%, China +1.68%, Taiwan +0.89%, Australia +0.85%, Singapore +0.60%, South Korea closed for holiday, India +3.38%. Asian markets reacted positively to Monday’s action from the PBOC to cut banks’ reserve requirement ratios that was done after Asian markets closed on Monday.

The dollar index (DXY00 +0.04%) is up +0.04% at a 3-1/2 week high. EUR/USD ^EURUSD) is up +0.01%. USD/JPY (^USDJPY)is up +0.37%.

Jun T-note prices (ZNM16 -0.10%) are down -2 ticks.

New York Fed President Dudley said that he is “somewhat less confident” that inflation will reach the Fed’s 2.0% target over time as “downside risks have crept up.” He added that a continuing decline in energy, commodity prices may signal “greater and more persistent” deflationary pressure in the global economy.

The Eurozone Jan unemployment rate unexpectedly fell -0.1 to 10.3%, stronger than expectations of unch at 10.4% and the lowest in 4-1/3 years.

The China Feb manufacturing PMI unexpectedly fell -0.4 to 49.0, weaker than expectations of unch at 49.4 and matched Nov 2011 as the steepest pace of contraction in 7 years.