Equties Retreat from All-Time Highs

Economic Data

- (US) Goldman Economist: Chain Store Sales w/e Feb 27th w/w: 0.0%; y/y: +1.8%
- (SG) Singapore Feb Purchasing Managers Index: 49.7 v 49.9 prior; Electronics Sector Index: 49.8 v 50.5 prior
- (CA) Canada Dec GDP M/M: 0.3% v 0.2%e; Y/Y: 2.8% v 2.5%e; Quarterly GDP Annualized: 2.4% v 2.0%e
- (CA) Canada Jan Industrial Product Price M/M: -0.4% v -0.8%e; Raw Materials Price Index M/M: -7.7% v -6.3%e
- (US) Redbook Retail Sales w/e Feb 27th: +2.6% y/y, Feb MTD: +0.8% m/m; FEB MTD +2.7% y/y
- (EU) Weekly ECB Forex Reserves: €246.4B v €245.7B prior
- (MX) Mexico Dec Gross Fixed Investment: 5.5% v 5.7%e
- (US) Feb ISM New York: 63.1 v 44.5 prior
- (US) Mar IBD/TIPP Economic Optimism: 49.1 v 47.5e
- (DK) Denmark Feb Foreign Reserves (DKK): 737.3B v 729.1Be

The Nasdaq has backed away from 5000 today and the S&P500 has come off all-time highs. US equities have followed European stocks lower in the absence of any major catalysts. As of writing, the DJIA is down 0.60%, the S&P500 is down 0.55% and the Nasdaq is down 0.90%.

The US Dollar index rose above 95.50 this morning to its highest level in 11 years. EUR/USD crept closer to the YTD lows, dropping to 1.1160 before ticking slightly higher. USD/JPY nudged above 1.20, with the yen at its weakest level since mid January, although the pair has retreated to 119.5 today. Note that the 10-year UST yield is moving up a few basis points today, to 2.096% even as equities come off their high levels.

WTI crude continues to be unable to sustain gains above $50 and is below this level this morning, while Brent is back above $60. US inventory data is not expected to see an end to the big gains in crude stocks. Meanwhile talk is growing that a US/Iran nuclear deal that could see a lifting of sanctions against Iran, a move that would certainly lead to big gains in Iranian crude exports.

February US auto sales were very uneven, with some big misses being chalked up to severe winter weather. Ford's sales declined nearly 2% y/y, compared to expectations for a 3-5% gain. Executive said there was a pronounced slowdown in the second half of February, which lines up with the major East Coast blizzards. Volkswagen saw its sales contract more than 5%, while Nissan's sales were up 2.7% compared to the more than 7% gain expected. GM was curiously not impacted, with Feb sales up right in line with estimates, while Fiat Chrysler was a bit slower than expected. Shares of Ford are down 3.5% while FCAU is down 2.5%. GM is unchanged.

Looking Ahead

- 15:15 (US) Fed chair Yellen on banking regulations
- 16:00 (KR) South Korea Feb Foreign Reserves: No est v $362.2B prior
- 16:30 (US) Weekly API Oil Inventories
- 16:45 (NZ) New Zealand Q4 Value of All Buildings Q/Q: 1.0%e v 1.5% prior
- 19:01 (UK) Feb BRC Shop Price Index Y/Y: No est v -1.3% prior
- 19:30 (AU) Australia Q4 GDP Q/Q: 0.6%e v 0.3% prior; Y/Y: 2.5%e v 2.7% prior
- 20:35 (JP) Japan Feb Services PMI: No est v 51.3 prior; Composite PMI: No est v 51.7 prior
- 20:45 (CN) China Feb HSBC Services PMI: No est v 51.8 prior; Composite PMI: No est v 51.0 prior
- 21:30 (HK) Hong Kong Feb HSBC Services PMI: No est v 49.4 prior
- (US) Feb Total Vehicle Sales: 16.70Me v 16.56M prior; Domestic Vehicle Sales: 13.40Me v 13.31M prior
- (CN) China People Political Consultative Conference
- (US) Fed's Mester speaks to Business Economists in Washington