Wednesday, February 28, 2018

Good morning-  Global equities are mixed to start this morning’s session. Most European stocks are slightly lower as the Stoxx 50 is down 6 points and the DAX is down 11 points while the FTSE is up 3 points. Asian stocks have rebounded since yesterday with the Nikkei and Hang Seng up 30 and 115 points respectively. US stock futures point to a higher open after all three major indices fell more than 1% on Tuesday following hawkish commentary from Fed Chair Powell. That said, the DOW is up 23 points, the S&P is up 2 points, and the NASDAQ is up 19 points. WTI crude is trading down to $62.96/bbl after hitting $64/bbl early late Monday night. With respect to rates. treasury yields are all over the place this morning. The front end of the curve is 0.5-1bps higher while the middle is flat and the back end is 1-1.5bps lower. IG has seen more than $20bn in volume over the last two sessions which could slow the pace of new issue sales as the market looks to digest recent supply. We just saw GDP for Q4 come in at 2.5% which matched the consensus estimate. Aside from mortgage applications and pending home sales, there is no significant economic data expected today.