OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps this morning are down -0.24% and European stocks are down -0.37% as weakness in commodity prices undercuts energy producers and mining stocks. Marathon Oil and Kinder Morgan are both down more than 1% in pre-market trading as Apr WTI Crude oil falls -0.77% after data from Baker Hughes Friday showed U.S. active oil rigs rose to a 17-month high. Freeport-McMoRan is down nearly 3% in pre-market trading as May COMEX copper slides -1.34% to a 1-week low on Chinese demand concerns. Losses in European stocks were limited after the Eurozone Mar Sentix investor confidence rose more than expected to a 9-1/2 year high. Asian stocks settled mixed: Japan -0.46%, Hong Kong +0.18%, China +0.48%, Taiwan +0.36%, Australia +0.30%, Singapore -0.03%, South Korea +0.24%, India +0.75%. Chinese stocks rose after Premier Li Keqiang, speaking at the annual National People’s Congress in Beijing, said systemic risk is under control and economic fundamentals remain sound enough for the government to set a 2017 growth target of “around 6.5%, or higher if possible.” Commodity prices fell, however, when he also warned that profound changes in the international political and economic landscape threaten global growth. He said challenges include a faster pace of U.S. interest rate hikes that pressure capital outflows and the yuan, along with the risk of trade frictions should President Trump follow through on his campaign pledges to take a tough stance on trade.

The dollar index is up +0.04%. EUR/USD is down -0.39%. USD/JPY is down -0.18%.

Jun 10-year T-note prices are up +4 ticks.

In its quarterly reviews, the Bank for International Settlements (BIS) warns the global economy’s recovery from the financial crisis may be overly dependent on domestic consumption and at risk of failing. It said “Increasing shares of private consumption in gross domestic product can be a leading indicator of future growth slowdowns as high household debt service ratios tend to become a potent drag on economic growth.”