OVERNIGHT MARKETS AND NEWS
Mar E-mini S&Ps (ESH17 -0.01%) are little changed, down -0.02%, while European stocks are up +0.11% on reduced Brexit concerns after the UK’s highest court ruled that Prime Minister May must seek an act of Parliament to start the 2-year countdown to Brexit, which may give British lawmakers a chance to soften the government’s plan. European stocks also received a boost after the Eurozone Jan Markit manufacturing PMI unexpectedly expanded. Mar WTI crude oil (CLH17 +0.19%) is up +0.17% on signs that OPEC members are adhering to their agreed upon production cuts after Iraq, OPEC’s second-biggest producer, said it has already reduced crude output by 180,000 bpd and will cut its output by another 30,000 bpd by the end of the month. Asian stocks settled mostly higher: Japan -0.55%, Hong Kong +0.22%, China +0.18%, Taiwan +0.25%, Australia +0.70%, Singapore +0.54%, South Korea +0.07%, India +0.95%. Chinese shares closed higher and Japanese stocks fell after President Trump on Monday signed an executive order that withdrew the U.S. from the Trans-Pacific Partnership accord. Losses in Japanese stocks were contained after the Japan Jan Nikkei manufacturing PMI expanded at the fastest pace in 2-3/4 years.
The dollar index (DXY00 +0.15%) is up +0.15%. EUR/USD (^EURUSD) is down -0.22%. USD/JPY (^USDJPY) is up +0.54%.
Mar 10-year T-note prices (ZNH17 -0.19%) are down -6.5 ticks.
The Eurozone Jan Markit manufacturing PMI unexpectedly rose +0.2 to 55.1, stronger than expectations of -0.1 to 54.8 and the fastest pace of expansion since the data series began in 2014.
The Japan Jan Nikkei manufacturing PMI rose +0.4 to 52.8, the fastest pace of expansion in 2-3/4 years.
U.S. STOCK PREVIEW
Key U.S. news today includes: (1) Jan Markit manufacturing PMI (expected +0.2 to 54.5, Dec +0.2 to 54.3), (2) Dec existing home sales (expected -2.0% to 5.50 million, Nov +0.7% to 5.61 million), (3) Jan Richmond Fed manufacturing index (expected -2 to 6, Dec +4 to 8), (4) Treasury auctions $26 billion of 2-year T-notes, (5) USDA Dec Cold Storage.
