OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH17 -0.25%) are down -0.25% and European stocks are down -0.12%. The BOE, as expected, kept its benchmark rate unchanged at 0.25% and maintained its asset purchase target at 435 billion pounds following today’s policy meeting. European bank stocks are weaker, led by a 5% drop in Deutsche Bank, after it reported quarterly revenue that missed consensus. Asian stocks settled mostly lower: Japan -1.22%, Hong Kong -0.57%, China closed for holiday, Taiwan -0.20%, Australia -0.14%, Singapore -0.76%, South Korea -0.40%, India +0.30%. Japan’s Nikkei Stock Index fell to a 1-week low as weakness in USD/JPY undercut exporter stocks. Mar WTI crude (CLH17 +0.37%) is up +0.56% at a 3-week high on heightened geopolitical tensions after the U.S. said it’s putting Iran “on notice” for testing ballistic missiles. Apr COMEX gold (GCJ17 +1.25%) is up +1.29% at a 3-week high as the dollar index tumbled to a 2-1/2 month low.

The dollar index (DXY00 -0.23%) is down -0.35% at a 2-1/2 month low after the Fed failed to provide forward guidance on future interest rate increases following Wednesday’s FOMC meeting. EUR/USD (^EURUSD) is up +0.33% at a 1-3/4 month high on speculation the ECB may have to taper QE after Eurozone PPI rose more than expected. USD/JPY (^USDJPY) is down -0.74%.

Mar 10-year T-note prices (ZNH17 +0.09%) are up +3 ticks.

Eurozone Dec PPI rose +0.7% m/m and +1.6% y/y, stronger than expectations of +0.5% m/m and +1.2% y/y with the +1.6% y/y gain the largest year-on-year increase in nearly 4 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Jan Challenger job cuts (Dec +42.2% y/y), (2) weekly initial unemployment claims (expected -9,000 to 250,000, previous +22,000 to 259,000) and continuing claims (expected -37,000 to 2.063 million, previous +41,000 to 2.100 million), (3) Q4 non-farm productivity (expected +1.0%, Q3 +3.1%) and Q4 unit labor costs (expected +1.9%, Q3 +0.7%), (4) USDA weekly Export Sales.