Asian Equities were lower overnight w/ the NIKKEI closing down 7.20 as losses in Healthcare, Industrials, Basic Materials and the Oil and Gas Sector were nearly offset by gains in Consumer Goods and Services and in the Utilities and Financial Sector. Chinese Stocks fell more sharply with the Hang Seng off 135pts with some major stocks missing earnings estimates…raising the specter of a poor earnings season overall. Perhaps too, the emerging notion the U.S. will brand China a Currency Manipulator in it’s semi-annual International Economic and Currency Report due on 15 April.

European Equities are just in positive territory at this writing after German Employment fell 31k against expectations for a slight gain. Following on yesterday’s Irish bank implosion is poor news on the Irish Employment front with the Unemployment rate jumping to 13.4%. Irish PPI rose 1% month on month but tanked 2.6% year on year. In other troubled countries news, Greek Retail Sales were reported up 8.1% year on year vs a prior 2.7% gain. French PPI rose just .1% month on month, raising the specter of deflationary pressures.

U.S. Equity Index futures are very slightly in the red at this writing w/ Dow Futures off 9pts and the S&P off just 1.25.

The Dollar is putting in a mixed performance with losses against the EUR still contained in y/day’s ranges. A bit of short covering on the dollar seems the likely cause rather than any sentiment change. CABLE however is over y/day’s highs w/ a big leg up as yield chasers jump into GBP/JPY. JPY is in fact weakening against the EUR, AUD and USD into this morning’s U.S. Open.

U.S. Treasury Futures up slightly at the long end of the curve w/ the 30yr up 6 ticks and the 10yr up just a couple of ticks at 116-00 basis the June contract. The 2 and 5yr are flat at this writing. The 30yr yield is down very slightly at 4.737%, the 10yr is at 3.853% and the 2/10 is at 2.798 w/ as the recent downward slope levels off. Today’s Treasury schedule is limited to a Cash Management Bill, the size of which is yet to be determined.

Commodities prices are higher into the NY Open with Crude up over $83 per barrel ahead of today’s DOE inventories report. API reported a smaller than expected build last night. Gold is up nearly $6 at $1111 and change on dollar weakness.

Today’s data includes MBA Mortgage Applications which were up 1.3%. Of particular interest will be today’s ADP Employment data at 8:15am EST with expectations for a gain fully built into equities prices. ADP is expected to gain 40k jobs. Chicago PMI is at 9:45am and February Factory Orders are at 10am. Also at 10am, NAPM Milwaukee.

Today’s speakers include the Fed’s Lockhart and Duke at 12:30pm EST.

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