Overnight Developments

Jun E-mini S&Ps this morning are up +0.47% at a 3-week high on expectations of strong S&P 500 Q1 corporate earnings results. Netflix is up over 7% in pre-market trading after it reported better-than-expected Q1 earnings and forecast a bigger-than expected increase in subscribers for Q2. European stocks are up +0.63% as automakers gained when China removed a two-decade restriction and will let foreign car makers own more than 50% of local ventures, which should boost foreign automakers profits. Also, exporters gained after EUR/USD fell back from a 2-week high and moved lower, which is positive for earnings for European exporters. Gains were limited in European stocks after the German Apr ZEW survey expectations of economic growth fell -13.3 to a 5-1/3 year low of -8.2. Asian stocks settled mixed: Japan +0.06%, Hong Kong -0.83%, China -1.41%, Taiwan -1.32%, Australia unch, Singapore +0.03%, South Korea -0.17%, India +0.26%. China's Shanghai Composite fell to a 2-1/4 month low after China Mar industrial production rose +6.0% y/y, the slowest pace of increase in 7 months, and as technology stocks tumbled after the U.S. banned ZTE Corp, China's second-largest telecommunications gear-maker, from buying American technology. Chinese bank stocks may get a boost in Wednesday's session as the PBOC, after Chinese markets closed Tuesday, cut some banks' reserve requirement ratio by 100 bp or 1.0%, effective Apr 25.

The dollar index is up +0.04%. EUR/USD is down -0.03%. USD/JPY is down -0.03%.

Jun 10-year T-note prices are down -2 ticks.

The German Apr ZEW survey expectations of economic growth fell -13.3 to a 5-1/3 year low of -8.2, weaker than expectations of -6.1 to -1.0.

China Q1 GDP rose +6.8% y/y, right on expectations.

China Mar industrial production rose +6.0% y/y, weaker than expectations of +6.3% y/y and the slowest pace of increase in 7 months.

China Mar retail sales rose +10.1% y/y, stronger than expectations of +9.7% y/y.