Overnight Developments

Mar E-mini S&Ps this morning are up +0.40% ahead of this morning's U.S. economic data on Jan consumer prices and Jan retail sales. European stocks are up +0.68% on signs of economic strength in Europe after Eurozone Dec industrial production rose more than expected and Eurozone Q4 GDP came in right on expectations. On the negative side, energy stocks are under pressure with Mar WTI crude oil down -0.66% after API data late Tuesday showed U.S. crude inventories rose +3.95 million bbl last week. Asian stocks settled mixed: Japan -0.95%, Hong Kong +2.27%, China +0.45%, Taiwan closed for holiday, Australia -0.25%, Singapore -0.36%, South Korea +1.14%, India -0.42%. Chinese stocks settled higher ahead of the week-long Lunar New Year holiday that begins tomorrow while Japan's Nikkei Stock index dropped to a 4-month low on weaker-than-expected Japan Q4 GDP and as USD/JPY tumbled to a 1-1/4 year low, which reduces the earnings prospects for Japanese exporters.

The dollar index is up +0.04%. EUR/USD is down -0.10%. USD/JPY is down -0.41% at a 1-1/4 year low.

Mar 10-year T-note prices are little changed, up +0.5 of a tick.

Eurozone Dec industrial production rose +0.4% m/m and +5.2% y/y, stronger than expectations of +0.1% m/m and +4.2% y/y with the +5.2% y/y gain the largest year-on-year increase in 6-1/3 years.

Eurozone Q4 GDP was left unrevised at +0.6% q/q and +2.7% y/y.

Japan Q4 GDP rose +0.5% (q/q annualized), weaker than expectations of +1.0% (q/q annualized) and the slowest pace of growth in 2-years. The Q4 GDP deflator was unch y/y, right on expectations. Q4 private consumption rose +0.5% q/q, stronger than expectations of +0.4% q/q, and Q4 business spending rose +0.7% q/q, weaker than expectations of +1.1% q/q.