OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM16 -0.54%) are down -0.47% and European stocks are down -1.44%, as a stronger dollar undercuts commodity prices and drags down raw-material and energy producing stocks. Hawkish comments from Fed officials this week have bolstered the chance of a Fed rate hike next month and boosted the dollar and led to a sell-off in commodities. Crude oil is down -2.26% at a 1-week low, gold is down -0.41% at a 1-month low, and copper is down -0.51% at a 1-week low. Asian stocks settled lower: Japan -0.64%, Hong Kong -1.31%, China -1.63%, Taiwan -0.26%, Australia -1.13%, Singapore -1.20%, South Korea -0.47%, India closed for holiday. Losses in crude oil producers led Chinese stocks lower after PetroChina Co. posted its weakest annual profit since 1999. The yuan slipped to a 1-week low against he dollar after the PBOC lowered its reference rate for yuan by 0.33%, the most in 2-1/2 months.

The dollar index (DXY00 +0.16%) is up +0.15% at a 1-week high. EUR/USD (^EURUSD) is down -0.09% at a 1-week low. USD/JPY (^USDJPY) is up +0.23% at a 1-week high.

Jun T-note prices (ZNM16 +0.04%) are up +0.5 of a tick.

In its monthly Economic Bulletin published today, the ECB said the monetary-policy package announced this month “will exploit the synergies between the different instruments and has been calibrated to further ease financing conditions, stimulate new credit provision and thereby reinforce the momentum of the Eurozone’s economic recovery and accelerate the return of inflation.”

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) St. Louis Fed President James Bullard’s speech on the U.S. economy and monetary policy at an even hosted by the New York Association for Business Economics, (2) weekly initial unemployment claims (expected +3,000 to 268,000, previous +7,000 to 265,000) and continuing claims (expected unch at 2.235 million, previous +8,000 to 2.235 million), (3) Feb durable goods orders (expected -3.0% and -0.3% ex-transportations, Jan +4.7% and +1.7% ex-transportation) (4) Mar Markit services PMI (expected +1.7 to 51.4, Feb -3.5 to 49.7), and (5) Mar Kansas City Fed manufacturing activity (Feb -3 to -12).