OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 +0.20%) this morning are up +0.14% at a fresh record nearest-futures high and European stocks are up +1.21%. Stock markets around the world are moving higher on optimism the global economic expansion can continue. Energy stocks are gaining with Feb WTI crude oil (CLG18 +0.31%) up +0.32% at a new 2-1/2 year high on signs of tighter oil supplies after data late yesterday from API showed U.S. crude inventories fell -4.99 million bbl last week. European stocks also found support on signs of stronger economic growth after the Eurozone Dec Markit composite PMI was revised upward to a 6-3/4 year high of 58.1. Asian stocks settled mostly higher: Japan +3.26%, Hong Kong +0.57%, China +0.49%, Taiwan +0.44%, Australia +0.11%, Singapore +1.06%, South Korea -0.78%, India +0.52%. China’s Shanghai Composite posted a 1-1/4 month high after JPMorgan Chase raised their China 2018 GDP forecast to 6.7% from 6.5%, citing an “upbeat external outlook.” Japan’s Nikkei Stock Index reopened after holiday and surged over 3% to a 26 year high on strength in technology and banking stocks.

The dollar index (DXY00 -0.28%) is down -0.30%. EUR/USD (^EURUSD) is up +0.38%. USD/JPY (^USDJPY) is up +0.09%.

Mar 10-year T-note prices (ZNH18 -0.15%) are down -5 ticks.

The China Dec Caixin services PMI rose +2.0 to 53.9, stronger than expectations of -0.1 to 51.8.

The Eurozone Dec Markit composite PMI was revised upward to a 6-3/4 year high of 58.1 from the originally reported 58.0.

The UK Dec Markit/CIPS services PMI rose +0.4 to 54.2, stronger than expectations of +0.2 to 54.0.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Dec Challenger job cuts (Nov +30.1% y/y), (2) Dec ADP employment change (expected +190,000, Nov +190,000), (3) weekly initial unemployment claims (expected -3,000 to 242,000, previous unch at 245,000) and continuing claims (expected -18,000 to 1.925 million, previous +7,000 to 1.943 million), (4) revised Dec Markit services PMI (expected +0.1 to 52.5, prelim-Dec -2.1 to 52.4), (5) EIA weekly Petroleum Status Report, (6) St. Louis Fed President James Bullard (non-voter) delivers keynote address at an economics convention in Philadelphia.