Overnight News: #Metals, #Energy, Financials

Jun E-mini stock futures are up +5.00 points (+0.24%) at a 3-month high on increased M&A activity as Virgin America VA surged 35% in pre-market trading after Alaska Air Group agreed to buy the airline for $2.6 billion.  Stocks are also higher on positive carryover from Friday’s rally after U.S. data on employment and manufacturing showed the economy is strengthening.  European stocks are up +1.15% after the Eurozone Feb unemployment rate fell -0.1 to 10.3%, a 4-1/2 year low.  EUR/USD is down -0.24% as Eurozone Feb producer prices fell a bigger than expected -4.2% y/y, the fastest pace of decline in 6-1/4 years, and after ECB Executive Board member Praet said that the ECB will continue to act “forcefully” if needed to counter the risk of low inflation in the Eurozone becoming entrenched.  China was closed for a holiday, although Japan’s Nikkei Stock Index closed down -0.24% at a 1-month low as exporter stocks slid after USD/JPY dropped to a 2-week low, which reduces the earnings prospects of exporters.  The dollar index is up +0.17%.  Jun T-notes are up +4 ticks at a 1-month high on speculation the Fed will be in no hurry to raise interest rates.

The Eurozone Feb unemployment rate fell -0.1 to 10.3%, right on expectations and the lowest in 4-1/2 years.

The Eurozone Feb PPI fell -0.7% m/m and -4.2% y/y, weaker than expectations of -0.5% m/m and -4.0% y/y with the -4.2% y/y fall the biggest year-on-year decline in 6-1/4 years.

The Eurozone Apr Sentix investor confidence rose +0.2 to 5.7, weaker than expectations of +1.5 to 7.0.

The UK Mar Markit/CIPS construction PMI was unchanged at 54.2, stronger than expectations of -0.1 to 54.1.