Overnight News: #Metals, #Energy, Financials

Jun E-mini stock futures are up +8.50 points (+0.42%) on a possible increase in M&A activity with Yahoo! Inc. up over 1% in pre-market trading after the parent of the UK’s Daily Mail said it is in talks with potential bidders for Yahoo.  European stocks are up +1.09% as a rally in Italian bank shares leads the overall market higher.  Italian bank stocks rallied on optimism that their bad-loan exposure can be reduced after people with knowledge of the matter said that Italian Treasury and central bank officials will meet with executives of major Italian banks today to discuss the creation of a fund that would help tackle banks’ non-performing loans.  Asian market settled mixed.  Japan’s Nikkei Stock Index closed down -0.44% after USD/JPY fell to a fresh 17-1/2 month low and fueled a sell-off in Japanese export stocks, while China’s Shanghai Composite closed up +1.64% on signs of improvement in the economy after the China Feb leading index rose to a 14-month high and after China Mar producer prices increased month-on-month for the first time since September 2013.  The dollar index is down -0.08% at a new 5-3/4 month low and Jun T-bonds are down -4 ticks.

China Mar CPI rose +2.3% y/y, a slower pace of increase than expectations of +2.4% y/y.  Mar PPI fell -4.3% y/y, a slower pace of decline than expectations of -4.6% y/y.

The China Feb leading index rose +0.88 to 99.00, the highest in 14 months.

Japan Feb machine orders fell -9.2% m/m and -0.7% y/y, a slower pace of decline than expectations of -12.0% m/m and -2.4% y/y.