North Korea

Kolanovic: "It Is No Longer Prudent To Buy The Dip"

"We think that would not be prudent over the next two to three weeks given the recent geopolitical developments and related tail risks... These geopolitical developments create tail risks for equities as well as for the Trump administration’s domestic agenda."

"Gold Has Figured It Out"

"... the simple fact is that geopolitical tensions will most likely escalate under Trump, not the other way round. Gold has already figured it out."

SocGen: "A Final Purge Of All Bearish Bond Sentiment May Cleanse The Market"

"I see no reason for USD/JPY to stop this side of 108. 2.29% this morning on nominal US 10s sees them below their recent range and real yields are 37bp now. Only a fall in US nominal yields to 1bp is avoiding the relative picture being even uglier but that just highlights the BOJs impotence in the face of lower global (US) yields."

US Deploys "Nuclear Sniffer" Plane To Japan As North Korea Tensions Come To A Boil

As tensions over North Korea's nuclear program mount, the United States Air Force has deployed a WC-135 (a.k.a. the "Nuclear Sniffer"), an aircraft that specializes in detecting radioactive debris after the detonation of a nuclear device, to Okinawa, Japan to assist with monitoring for potential nuclear tests in the region. 

Frontrunning: April 12

  • Futures flat as geopolitical risks weigh; earnings eyed (Reuters)
  • Brent oil rises for 8th day on possible extension to supply cut (Reuters)
  • U.S. accuses Russia of Syria gas attack 'cover up' (Reuters)
  • Xi Tells Trump China Wants Peaceful North Korea Solution (WSJ)
  • Tillerson, Lavrov Hold Talks in Moscow Amid Rising Tensions Over Syria (WSJ)

Trump Unexpectedly Calls China's President To Discuss North Korea

Chinese President Xi Jinping called for a peaceful resolution of rising tension on the Korean peninsula in a telephone conversation initiated late on Tuesday night by Donald Trump, as a U.S. aircraft carrier strike group steamed towards the region.

Traders "Swoop" On Stocks, Oil Rises For 8th Day But Bonds Still Don't Buy It

S&P futures are unchanged and Asian stocks closed mixed, however European stocks rebounded for first time this week, led by auto stocks after Daimler’s quarterly profit, as a break in alarming political news prompted traders to "swoop" - as Reuters puts it - on equities, cooling a safe-haven rally that saw the yen and gold at five-month highs and bond yields to drop their lowest this year.

Breslow Turns Bullish: "Don't Assume Each Event Will End Badly"

"Too many commentators have fallen into the “everything is binary” trap and decided that if you assume each event will end badly, there’s material to turn out a good rant. The reality is, actual investors have learned that all binary outcomes won’t resolve themselves in the same way and they have to find more than one way to deconstruct events."

"The System Itself Is Beyond Repair"

"Trump’s capitulation makes it abundantly clear that the system itself is beyond repair.  Getting the right individual to salvage the American welfare/warfare state cannot be done. "

Trump: "We're Sending A Very Powerful Armada" To North Korea

"We are sending an armada, very powerful. We have submarines, very powerful, far more powerful than the aircraft carrier, that I can tell you. And we have the best military people on Earth. And I will say this. He is doing the wrong thing. He is doing the wrong thing."