OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 +0.49%) this morning are up +0.51% at a 1-week high as they garner support from gains in Asian and European markets. The VIX volatility index fell to a 1-week low and is a supportive factor for stock prices as global equity markets recover further from last week’s sharp sell-off. European stocks are up +0.94%. Stock prices are higher despite an increase in T-note yields as the 10-year T-note yield rose to a new 4-year high of 2.94% in overnight trade. Asian stocks settled higher: Japan +1.47%, Hong Kong +1.97%, China and Taiwan closed for holiday, Australia +1.16%, Singapore +1.19%, South Korea closed for holiday, India +0.41%. Japanese stocks moved higher despite a fall in USD/JPY to a 1-1/4 year low, as strength in technology stocks led the overall market higher.

The dollar index (DXY00 -0.32%) is down -0.31% at a 2-week low on concern the U.S. fiscal and current-account deficits will widen. EUR/USD (^EURUSD) is up +0.18% at a 1-1/2 week high. USD/JPY (^USDJPY) is down -0.23% at a 1-1/4 year low after Japanese Finance Minister Aso said the yen’s strength “wasn’t abrupt enough” to require intervention.

Mar 10-year T-note prices (ZNH18 -0.14%) are down -5 ticks at a new contract low.

Eurozone Jan new car registrations rose +7.1% y/y to 1,253,877.

Japan Dec core machine orders fell -11.9% m/m, weaker than expectations of -2.0% m/m and the biggest decline in 3-1/2 years.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) weekly initial unemployment claims (expected +7,000 to 228,000, previous -9,000 to 221,000) and continuing claims (expected +4,000 to 1.927 million, previous -33,000 to 1.923 million), (2) Feb Empire manufacturing survey general business conditions index (expected +0.2 to 17.9, Jan -1.9 to 17.7), (3) Feb Philadelphia Fed business outlook survey (expected -0.7 to 21.5, Jan -5.7 to 22.2), (4) Jan PPI final demand (expected +0.4% m/m and +2.4% y/y, Dec -0.1% m/m and +2.6% y/y) and Jan PPI ex food & energy (expected +0.2% m/m and +2.0% y/y, Dec -0.1% m/m and +2.3% y/y), (5) USDA weekly Export Sales, (6) Jan industrial production (expected +0.2%, Dec +0.9%), (7) Feb NAHB housing market index (expected unch at 72, Jan -2 to 72), (8) Treasury auctions $7 billion of 30-year TIPS.