• Global stocks are lower with the European DJ Stoxx 50 Index down -0.04% and June S&Ps down -1.20 points. The euro weakened and Greek stocks and bonds fell on concern a bailout plan for Greece is unraveling. Michael Meister, the chief finance spokesman for German Chancellor Merkel's party, said Greece should turn to the IMF if it needs aid, contradicting statements from leaders including ECB President Trichet, who said the Euro-Zone should solve its own financial problems. It appears the rift between Greece and Germany is much deeper than assumed after an unnamed senior Greek government official said Greek Prime Minister Papandreou gave European leaders until next week to spell out what financial aid they are prepared to give him or Greece may seek aid from the IMF over the April 2 to April 4 Easter weekend. European energy producers fell as crude oil declined and after Total SA dropped 1.1% when Goldman Sachs added the third-largest European oil company to its "conviction sell" list. Declines in European stocks were limited as health-care companies rallied after GlaxoSmithKline Plc, Britain's biggest drug maker, jumped 2.5% after Novartis AG abandoned the US rights to an asthma drug that would rival Glaxo's Advair.

• The Asian markets today closed mostly lower with Japan down -0.95%, Hong Kong -0.25%, China -0.19%, Taiwan +0.49%, Australia +0.20%, Singapore -0.18%, South Korea -0.57%, India +0.17%. Sentiment among Japan's large manufacturers with more than 1 billion yen ($11 million) in capital was 4.3 in Q1, the third consecutive quarter manufacturers were optimistic and a sign that Japan's export-led recovery is gaining momentum. A number greater than zero means optimists outnumber pessimists. The Q1 BSI sentiment report indicates that the BOJ's April 1 Tankan survey will improve this quarter. Japanese commercial land prices plunged -6.1% y/y in 2009 to their lowest level in at least 36 years as developers faced tighter credit markets and the recession discouraged buyers. Zhang Wei, China's vice chairman of the China Council for the Promotion of International Trade, said the government is conducting yuan stress tests for 12 industries to test the ability of companies to withstand a stronger currency. Zhang Wei said China should delay the appreciation of the yuan to give exporters more time as the electronics and machinery industries would post losses if the yuan appreciated because they have signed contracts to supply products in advance.

• June S&Ps this morning are trading down -1.20 points. The US stock market yesterday traded higher the entire day and finished with moderate gains (Dow Jones +0.45%, S&P 500 +0.58%, Nasdaq Composite +0.47%). The S&P 500 and Dow Jones climbed to 17-1/2 month highs and the Nasdaq rallied to a 1-1/2 year high. Bullish factors for stocks included (1) continued evidence that the economic recovery has yet to stoke inflation after the Feb PPI came in weaker-than-expected (-0.6% m/m and +4.4% y/y versus expectations of -0.2% and +4.9% y/y), (2) gains in energy and raw-materials producers as commodities prices rose on expectations of a recovery in demand, (3) comments from Dominique Strauss-Kahn, head of the IMF, who said that the global recovery "is shaping up to be better than expected and we are forecasting global growth of 4% this year."

• Bearish factors for stocks included (1) weakness in health-care companies after House of Representative Kucinich of Ohio, who opposed an earlier version of the health-care bill, said he will now support legislation overhauling the US health-care system, which increases the chance that the legislation gets approved, (2) the prediction from Nobel laureate economist Stiglitz that the Fed's decision to stop purchasing mortgage-debt will drive up mortgage rates and worsen the housing crisis, and (3) late profit-taking in financial stocks after Citigroup downgraded the global financial sector to "neutral" from "overweight."

• Nike (NKE) jumped 4.8% in pre-market trading after it reported Q3 profit of $1.01 per share, well ahead of analysts' estimates of 89 cents.

• Broadcom (BRCM) gained 1.8% in European trading after it was upgraded to "buy" from "neutral" at Goldman Sachs.

• June 10-year T-notes this morning are trading up +2 ticks. T-note prices yesterday rallied to a 1-1/2 high but shed its gains and closed unchanged at 117-115. The 10-year T-note yield fell to a 1-1/2 week low of 3.625%. Bullish factors included (1) the weaker-than-expected Feb PPI (-0.6% m/m and +4.4% y/y versus expectations of -0.2% and +4.9% y/y), and (2) the prediction from BNP Paribas that the Fed will "stay on hold for a lot longer than the market is expecting" as the struggle to recover from recession will keep inflation absent from the US economy for years. Bearish factors yesterday included (1) a decrease in the safe-haven demand for Treasuries after the S&P 500 rallied to a 17-1/2 month high, and (2) a possible increase in supply pressures as the Treasury announces on Thursday the amounts of 2-year, 5-year and 7-year T-notes it will auction next week.

• The dollar index this morning is higher with the dollar/yen -0.04 yen and the euro/dollar -0.71 cents. The dollar index yesterday dropped to a 1-1/4 month low but recovered most of its losses and finished only slightly lower. Bearish factors yesterday included (1) carry-over weakness following the Fed's post-FOMC statement on Tuesday that said interest rates will remain "exceptionally low" for an "extended period," which weakened the dollar's interest rate differentials, and (2) strength in the British pound against the dollar after Feb UK jobless claims unexpectedly fell by the most since 1997. Bullish factors included (1) comments from a German government spokesman that European Union finance ministers made "no decisions" on aid to Greece and that no such decision is likely at next week's EU summit, which casts doubt on solving Greece's debt problem and weakens the euro, (2) the action by the BOJ to double its 3-month loan facility lending program to banks to 20 trillion yen ($222 billion) from 10 trillion yen, which increases the BOJ's quantitative easing program and weakens the yen, and (3) comments from EU Economic and Monetary Affairs Commissioner Rehn that some European countries budget-deficit targets are unreliable as they may be basing their budget plans on overly-optimistic growth forecasts.

• April crude oil prices this morning are down -52 cents and Apr gasoline is -1.74 cents. Apr crude oil yesterday closed higher for a second day and settled up +$1.23 per barrel. Apr gasoline rallied to a 17-1/2 month high and closed up +3.47 cents per gallon. Bullish factors included (1) the fall in the dollar index to a 1-1/4 month low, (2) OPEC's decision to leave its production quotas unchanged following their meeting in Vienna, (3) the larger-than-expected decline in weekly gasoline inventories (-1.71 million bbl versus expectations of -750,000 bbl), and (4) comments from Saudi Arabian Oil Minister Ali al-Naimi that crude oil prices are "beautiful" along with his prediction that global oil demand may grow about 1 million bpd in the second half of this year. Bearish factors included (1) slack demand after total US fuel demand for the week ended Mar 12 slipped 4.2% to 18.8 million barrels a day, the biggest one-week decline in over 4 months, and (2) the statement from Nigeria's Petroleum Minister that his country plans to increase its oil production capacity by 300,000 bpd this year.

Earnings reports (confirmed releases, sorted by mkt cap) FDX-FedEx (BEST earnings consensus ($0.73), VIP-Vimpel-Communications (0.40), ROST-Ross Stores (1.16), CTAS-Cintas (0.30), GME-GameStop (1.27), MLHR-Herman Miller (0.18), PALM-Palm (-0.40), CATO-Cato Corp. (0.22).

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