OVERNIGHT MARKETS AND NEWS

Mar E-mini S&Ps (ESH18 +0.37%) this morning are up +0.31% and European stocks are up +0.05% ahead of the results of the 2-day FOMC meeting later this afternoon. President Trump’s State of the Union address Tuesday night offered few clues on U.S. policy, although Mar COMEX copper prices (HGH18 +0.97%) are up +1.05% after he asked Congress to approve a $1.5 trillion infrastructure spending plan. Losses in energy stocks limited gains in the overall market with Mar WTI crude oil (CLH18 -0.79%) down -0.62% at a 1-week low after API data late Tuesday showed U.S. crude inventories rose +3.23 million bbl last week. European stocks found support on signs of slack inflation that may keep the ECB from ending stimulus after Eurozone Jan CPI rose +1.3% y/y, the slowest pace of increase in 6-months. Also, ECB Executive Board member Coeure said Eurozone inflation will converge “only very gradually” toward the ECB’s goal, justifying the need to continue providing stimulus. Strength in Germany’s economy, Europe’s largest, also provided support to European stocks after the German Jan unemployment rate fell to a record low of 5.4%. Asian stocks settled mixed: Japan -0.83%, Hong Kong +0.86%, China -0.21%, Taiwan +0.24%, Australia +0.25%, Singapore -0.42%, South Korea -0.01%, India -0.19%. An unexpected decline in Chinese manufacturing activity undercut most Asian markets after the China Jan manufacturing PMI unexpectedly fell -0.3 to 51.3, the slowest pace of increase in 8-months.

The dollar index (DXY00 -0.25%) is down -0.30%. EUR/USD (^EURUSD) is up +0.45%. USD/JPY (^USDJPY) is down -0.02%.

Mar 10-year T-note prices (ZNH18 +0.13%) are up +4 ticks.

The China Jan manufacturing PMI unexpectedly fell -0.3 to 51.3, weaker than expectations of no change at 51.6 and the slowest pace of expansion in 8 months. The Jan non-manufacturing PMI unexpectedly rose +0.3 to 55.3, stronger than expectations of -0.1 to 54.9.

Eurozone Jan CPI rose +1.3% y/y, stronger than expectations of +1.2% y/y, but still the slowest pace of increase in 6-months. The Jan core CPI rose +1.0% y/y, right on expectations.

ECB Executive Board member Coeure said Eurozone inflation will converge “only very gradually” toward the ECB’s goal, justifying the need to continue providing stimulus.

The German Jan unemployment change fell -25,000 to 2.415 million, stronger than expectations of -17,000. The Jan unemployment rate fell -0.1 to 5.4%, right on expectations and the lowest since German reunification in 1990.