Morning Call For Tuesday, April 11

OVERNIGHT MARKETS AND NEWS

Jun E-mini S&Ps (ESM17 -0.06%) this morning are unchanged as global geopolitical concerns create market uncertainty as the VIX volatility index climbed to a 2-week high. White House press secretary Spicer warned Syria to stop using barrel bombs against civilians, which suggests the Trump administration may take additional actions against Syria. The UN Security Council demanded that Syria stop using barrel bombs in a Feb 2014 resolution, and a UN inquiry commission found that Syria’s use of the weapon violated international law. Also, the U.S. Pacific Command ordered the Carl Vinson strike group toward the Korean peninsula to defend against any provocation from North Korea. European stocks are down -0.05% and were undercut after data showed Eurozone Feb industrial production unexpectedly declined. Also, French polls show the presidential race is too tight to call, which increases Frexit concerns. European stock losses were limited, however, after the German ZEW Apr investor confidence rose more than expected to the highest in 20-months. Asian stocks settled mixed: Japan -0.27%, Hong Kong -0.72%, China +0.60%, Taiwan -0.51%, Australia +0.28%, Singapore -0.21%, South Korea -0.62%, India +0.72%. South Korea’s Kospi Stock Index posted a new 4-week low and closed lower for a second day as the U.S. sends a carrier strike group toward the Korean peninsula, which ramps up concerns over North Korea.

The dollar index (DXY00 -0.17%) is down -0.18%. EUR/USD (^EURUSD) is up +0.16%. USD/JPY (^USDJPY) is down -0.31%.

Jun 10-year T-note prices (ZNM17 +0.09%) are up +5 ticks.

The German Apr ZEW survey expectations of economic growth rose +6.7 to 19.5, stronger than expectations of +2.0 to 14.8 and a 20-month high.

Eurozone Feb industrial production unexpectedly fell -0.3% m/m, weaker than expectations of +0.1% m/m.

U.S. STOCK PREVIEW

Key U.S. news today includes: (1) Feb JOLTS job openings (expected +24,000 to 5.650 million, Jan +87,000 to 5.626 million), (2) Treasury auctions $20 billion 10-year T-notes, (3) Minneapolis Fed President Neel Kashkari participates in a 45-minute Q&A at a meeting of the Minnesota Business partnership in Minneapolis, (4) USDA Apr WASDE crop production.