OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM17 +0.07%) this morning are down -0.05% at a 1-week low and European stocks are down -0.23% after the U.S. launched cruise missiles against Syrian airfields in retaliation from Syrian President Bashar al-Assad’s alleged poison gas attacks on civilians. President Putin of Russia, a Syrian ally, condemned the U.S. attack as an “act of aggression against a sovereign state” and suspended as accord with the U.S. designed to avoid incidents in Syrian airspace. Jun COMEX gold (GCM17 +0.92%) surged +1.03% to a 4-3/4 month high on increased safe-haven demand, while government bond markets rallied as the U.S. 10-year T-note yield fell to a 4-1/2 month low of 2.29%. Stocks recovered from their worst levels as energy producing companies rose with a +0.93% rally in May WTI crude oil (CLK17 +0.91%) to a 4-week high. Asian stocks settled mixed: Japan +0.36%, Hong Kong -0.03%, China +0.17%, Taiwan -0.25%, Australia +0.11%, Singapore +0.05% South Korea -0.16%, India -0.74%. Most Asian bourses shrugged off the U.S. missile strike on Syria as the rally in crude oil to a 4-week high boosted energy producing stocks and pushed China’s Shanghai Composite up to a 4-1/4 month high.

The dollar index (DXY00 +0.16%) is up +0.14%. EUR/USD (^EURUSD) is down -0.15% at a 3-week low after ECB Executive Board member Coeure said that the Syria situation is a “downside risk” to the Eurozone. USD/JPY (^USDJPY) is down -0.08% at a 1-1/2 week low as the Syrian situation boosted the safe-haven demand for the yen.

Jun 10-year T-note prices (ZNM17 +0.11%) are up +5.5ticks at a 5-week nearest-futures high.

The German Feb trade balance increased to a surplus of +19.9 billion euros, wider than expectations of +17.7 billion euros. Feb exports unexpectedly rose +0.8% m/m, stronger than expectations of -0.5% m/m. Feb imports fell -1.6% m/m, weaker than expectations of +0.2% m/m and the biggest decline in 11 months.