Barchart U.S. Morning Call

Overnight Developments

• Global stocks are stronger with the European DJ Stoxx 50 Index up +0.58% at a 1-month high and March S&Ps up +4.60 points at a 1-1/4 month high. Global stocks gained ahead of the Feb US payrolls report that will provide clues about the strength of the recovery. The dollar and Treasuries are little changed and most commodities are higher. Greece successfully raised 5 billion euros ($6.8 billion) in a sale of 10-year bonds and Jean-Claude Juncker, who heads the group of Euro-Zone finance ministers, said Greece "won't be left alone" as it tries to tame a record budget deficit. European stocks also received a boost after Jan German factory orders rose a more-than-expected +4.3% m/m and +19.6% y/y. The +4.3% m/m increase is the biggest monthly gain in 2-1/2 years as a revival in global demand shows the recovery strengthening. Basic-resource producers rallied as commodity prices rose and Volkswagen AG, Europe's largest automaker, climbed 2.3% after Citigroup upgraded the stock to "buy" from "hold." Limiting gains in European stocks was the 1.1% drop in Salzgitter AG after Germany's second-largest steelmaker posted a full-year net loss of 386.9 million euros, wider than analysts' estimates of a 239 million-euro loss.

• The Asian markets today closed higher with Japan up +2.20%, Hong Kong +1.03%, China +0.28%, Taiwan +1.27%, Australia +0.35%, Singapore +0.78%, South Korea +1.01%, India +0.13%. The yen weakened and Japanese stocks gained after the Nikkei newspaper reported that the BOJ would discuss ways to lower short-term rates at its 2-day policy meeting starting March 16. Japanese exporters were boosted after the yen dropped and Asian shipping companies gained after the Baltic Dry Index, a gauge of shipping rates, soared 7.2%, its biggest increase since July. Chinese stocks came off of their best levels after Premier Wen Jiabao warned of "latent risk" in China's banks and pledged to crack down on property speculation as the government struggles to avert building asset bubbles. Wen also said the government will promote the yuan's usage abroad and aims to manage inflation expectations........more detail