Overnight Developments

Mar E-mini S&Ps this morning are up +0.39% after Congress passed a 2-year budget agreement early this morning, which President Trump said he will sign into law. Stocks also moved higher after the 10-year T-note yield steadied below its recent 4-year high of 2.88%. European stocks, however, are down -1.42% at an 11-1/4 month low. Weakness in mining and energy stocks is leading losses in the overall market with Mar COMEX copper down -0.63% at a 1-3/4 month low and Mar WTI crude oil down -1.08%. Signs of robust copper supplies are undercutting prices after LME copper inventories jumped +20,125 MT to an 8-1/2 month high of 336,225 MT and weekly Shanghai copper inventories rose +13,537 MT to a 5-1/2 month high of 186,132 MT. Asian stocks settled lower: Japan -2.32%, Hong Kong -3.10%, China -4.05%, Taiwan -1.49%, Australia -0.90%, Singapore -1.13%, South Korea -2.18%, India -1.18%. Asian markets followed Thursday's losses in U.S. and European markets with China's Shanghai Composite falling to an 8-1/2 month low.

The dollar index is up +0.25%. EUR/USD is down -0.07%. USD/JPY is up +0.22%.

Mar 10-year T-note prices are up +1 tick.

Kansas City Fed President George said, "in the near-term, the good news is that the U.S. economy is currently growing at a moderate pace, with full employment and price stability" and the FOMC's projection of three rate hikes this year and about the same number next year is a "reasonable baseline unless the outlook changes materially."

UK Dec industrial production fell -1.3% m/m, weaker than expectations of -0.9% m/m and the biggest decline in 5-1/4 years.

UK Dec manufacturing production rose +0.3% m/m, right on expectations.

China Jan CPI rose +1.5% y/y, right on expectations and the slowest pace of increase in 6 months. Jan PPI rose +4.3% y/y, right on expectations and the slowest pace of increase in 14 months.