S&P futures point to a slightly lower open, while Asian and European stocks are likewise modestly in the red. Trading volumes are muted for most markets on Monday with investors spooked by rising geopolitical tensions in the Middle East and the Korean peninsula. It is also a holiday-shortened week in much of the West.
"the missile strikes change NONE of the calculus for me...Thus, the balance of risk remains in favor of upside for now until this muscle memory above (buy risk dips, sell vol) is changed... The near-to-medium-term ‘risk downside’ story to me remains largely about the rates move as ‘reflation’ has broken trend line..."
After initially tumbling in the aftermath of the U.S. missile attack on Syria which jolted financial markets, boosting haven assets and temporarily shifting investor focus from today's jobs data , S&P futures have managed to recoup all losses (the Nikkei closed up 0.4% after sliding earlier in the session), with Europe also just fractionally lower and climbing fast.
"Don’t be fooled by appearances... foreign policy figures in the days of Kennedy and Krushchev were actually attempting to trust and deescalate, fearful of setting things off. Today, foreign policy men and woman seem dogged and emboldened by the chance for destruction."
"Dimon argues that the current capital standards are restraining lending and impairing economic growth, yet he also points out that JPMorgan bought back $26 billion in stock over the past five years. If JPMorgan really had demand for additional loans from creditworthy borrowers, why did it turn those customers away and instead choose to buy back its stock?"
"The whole thing is broken, and you don’t heal that by pointing out to what extent the other side is broken. You heal it by looking at your own f*ck-ups, and then correct them..This is not about Assad, it’s about you, and Theresa May and Trump and Obama and Hillary and W. and Merkel and Tony Blair and scores of French and German politicians who’ve kept the death racket alive all these years."
S&P futures are little changed at 6am ET, trading at 2347.55 and paring an earlier 0.4 percent drop, on the back of the USDJPY ramp which for the second day in a row has emerged alongside the European open, soothing concerns about the Fed's balance sheet reduction and "some" Fed officials warning that stocks have gotten expensive. While Asian stocks fall in early trading, European bourses rebounded from session lows alongside the S&P and USDJPY.
"Markets have made clear which way they want to go, they just haven’t picked which catalyst they’ll blame. The catalyst might be headlines from the Trump-Xi summit, or the ECB’s comments, or it might be the labor report tomorrow, or something else entirely. It doesn’t matter."
Some 270,000 Syrians in Germany will have the right to bring in their family members, a newspaper said on Wednesday - a statistic that could fuel the debate about migration less than six months before a national election.
"On this program tonight, we will not insult your intelligence by pretending [it's legitimate]... Nor will we aid and abet the people trying to misinform you, the American people, by creating a diversion. Not going to do it."
Global stocks were pressured by a poor start to the second quarter in the US, where carmakers reported disappointing sales data, slamming auto stocks around the globe. The selling has persisted for a second day, with Asian stocks, S&P futures fall and European shares all partially in the red today after their biggest decline in two weeks.
There is so much excess liquidity in China that an 18-year-old Romanian model has agreed to sell her virginity to a "very friendly" - and generous - Hong Kong businessman for the "life-changing" sum of $2.45 million (€ 2.3 million).
Having confessed to the fact that Fed "forecasts" are as useless as any other guess (and not commitments), NY Fed's Bill Dudley admitted this morning that the Fed-inspired student-loan bubble is a debt overhang that both inhibits home ownership and is a headwind to economic growth.