Pentagon Inspector General Launches Investigation Of Michael Flynn

The office of the Pentagon inspector general opened an investigation to determine whether former national security adviser Michael Flynn failed to obtain approval prior to receiving payment from a foreign government, according a document published by Elijah Cummings.

Pending Home Sales Drop In March - Stagnant For 2 Years

Contracts to buy previously owned U.S. homes declined in March after rising a month earlier by the most since 2010, as perhaps the seasonal exuberance gives way to affordability constraints. Despite NAR's comments that "home shoppers are coming out in droves this spring," it is evident from the chart below that pending home sales have been stagnant for almost two years.

JPM Cuts Q1 GDP Forecast To Just 0.3%

We now believe that real GDP increased 0.3% saar in 1Q. Turning to today’s reports, the flurry of information was a negative for 1Q growth on net, mainly through the inventory components.

"Amber Warning Sign" Issued For EURUSD Bulls

Having moved to new highs in this up move above the 1.0906 March high, EURUSD looks to be struggling to sustain those gains. As a consequence there is a danger that triple momentum divergence is forming on the daily chart.

Bernanke 'Terrifies' Stock Investors, Again

If you are a stock investor, you should be terrified. The most disconcerting words have been uttered by the one person capable of changing the whole dynamic. After spending so many years trying to recreate the magic of the “maestro”, Ben Bernanke in retirement is still at it.

Euro Spikes On Upbeat Draghi Comments, Then Drops On Muted Inflation Outlook

Well that didn't last long:moments after the EUR spiked on Draghi's upbeat economic comments, it has since filled the entire gap and is back to session lows after Draghi talked down Eurozone inflation saying there is no sufficient evidence to alter inflation outlook, and no evidence of a self-sustaining inflation move.

Q1 GDP Takes Another Hit As Wholesale Inventories Slide In March

With non-hope-based GDP forecasts for Q1 at cycle lows, today's wholesale inventories decline will not help. After dropping in January, and rebounding in Feb, March saw inventories drop 0.1% (against expectations of a 0.2% rise). This is the first quarterly decline in wholesale inventories since Q1 2016 (when the world was feared to be heading into recession).

Mario Draghi's "Why More QE Is Possible But Everything's Awesome" ECB Press Conference - Live Feed

Despite cherry-picked indications (and exultations) that everything is awesome in Europe's economies (and central banks were united to rescue the world in case of a Le Pen victory), Mario Draghi decided to offer the at-record-high markets another bowl of potential punch bystating that if things got "less favorable" the ECB would increase/extend QE. We look forward to hearing his 'balanced' reasoning.

WTI/RBOB Tumble As Market "Runs Out Of Patience With OPEC"

Just as we warned yesterday following the EIA inventory and production data release, the exuberance over the crude draw was misplaced (due to the surge in product builds and almost unprecedented refining activity along with continued resurgent oil production). Saudi imports continue to show no sign of the OPEC cuts and asone anylst noted "the market looks like it wants to turn lower, maybe it has run out patience waiting for OPEC"

Frontrunning: April 27

  • Israel strikes Iran-supplied arms depot near Damascus airport (reuters)
  • ECB Keeps Policy Settings Unchanged Awaiting Political Clarity (BBG)
  • Lawmakers push one-week stopgap funding bill (The Hill)
  • Key Moments From Trump’s First 100 Days (WSJ)
  • Trump Makes Huge U-Turn on Pulling Out of Nafta (BBG)

Stocks Dazed After Trump NAFTA Flop, Tax Plan Disappointment; ECB Looms

European shares are lower, pressured by disappointing results by Deutsche Bank and ending a six-session gain, as Asian equities and S&P futures were little changed after a record-setting rally in world stocks which pushed the MSCI World index to over $50 trillion yesterday, fizzled after Trump released unconvincing tax cut plans prompting traders to "sell the news" while caution set in as the ECB met.