* U.S. stocks closed sharply higher Monday, regaining more than half of their correction-level losses amid a stabilization in interest rates.
* The DJ closed up 1.58%, up 400 points, thanks to gains in industrial giants 3M and Boeing with the S&P +1.18% and Nasdaq +1.15%.
* Asian stocks mixed with Japan’s Nikkei +1.07%, rising to the highest in more than three weeks.
* China slid 1.2%, ending a six-day winning streak, as concerns about earnings emerged ahead of key legislative meetings in coming weeks.
* US Treasury yields struggled for direction, backing further away from the closely watched 3% level as investors looked ahead to new Fed chair Powell’s first congressional testimony in hopes for clues on the pace of rate hikes.
* US treasuries in tight range overnight
* Dollar eases and Oil consolidates.
* Japanese Economy Minister Motegi said that he expected consumer spending to continue rising but that he would monitor the impact of accelerating inflation on consumer sentiment.
* IEA reports US will overtake Russia as biggest oil producer by 2019 at the latest.
* US Tres Sec Mnuchin says US does not set policy to impact the dollar, strong dollar is good for the US.
* Fed Bullard (non-voting dove) say he is “concerned about the Fed getting overzealous”.
* Fed Quarles is “not viewing the 2% (inflation) target as a cap” but also has no objective to increase inflation above target.
* ECB Draghi said in Q&A the “well past” is a “key concept of our monetary policy stance”. Extension of QE has not been discussed. ELA should be centralised.
* ECB (Incoming Vice Pres) de Guindos hopes inflation will converge to target “over the next quarters”. He thinks natural interest rate is “very low”.
Data today sees release of German state CPIs commencing with Saxony at 8am followed by Brandenburg,Hesse and Bavaria at 9am with NRW at 9.30am.
* Spanish CPI at 8am, EU M3 money supply at 9am ,Italian mfg and cons conf at 9am, EU Economic conf at 10am with headline German CPI due at 1pm.
* US Wholesale inventories and Durable goods at 1.30pm and then Richmond Fed at 3pm.