Morning Call For Thursday, April 12

Overnight Markets And News

Jun E-mini S&Ps (ESM18 +0.45%) this morning are up +0.57% and European stocks are up +0.41% as the markets await President Trump’s decision on military action against Syria. President Trump tweeted this morning that he “never said when an attack on Syria would take place. Could be very soon or not so soon at all.” UK Prime Minister May called for an emergency Cabinet meeting for today to discuss how the UK will respond to the Syrian government’s suspected chemical attacks on its own people. French President Macron said a decision on how to respond to the Syrian chemical attacks will come when France and its allies “find it the most useful and efficient.” Crude oil prices are just below Wednesday’s 3-1/3 year high on rising tensions in the Middle East. Along with the Syrian situation, Saudi Arabia intercepted a ballistic missile fired at Riyadh Wednesday and shot down 2 drones in another part of the country as Yemeni rebels step up their attacks. A rally in European airline stocks is helping to lift the overall market on increased M&A activity after British Airways owner IAG said it could make a bid for Norwegian Airlines. Asian stocks settled mostly lower: Japan -0.12%, Hong Kong -0.22%, China -0.87%, Taiwan -0.17%, Australia -0.23%, Singapore -0.32%, South Korea +0.09%, India +0.47%.

The dollar index (DXY00 +0.11%) is up +0.19% on carry-over support from Wednesday afternoon’s minutes of the Mar 20-21 FOMC meeting that signaled policymakers were leaning toward faster rate hikes. EUR/USD (^EURUSD-0.14%) is down -0.22% after Eurozone Feb industrial production unexpectedly declined for a third consecutive month. USD/JPY (^USDJPY +0.33%) is up +0.37%.

Jun 10-year T-note prices (ZNM18 -0-015) are down -2.5 ticks.

Eurozone Feb industrial production unexpectedly fell -0.8% m/m, weaker than expectations of +0.1% m/m and the biggest decline in 8 months.

U.S. Stock Preview

Key U.S. news today includes: (1) weekly initial unemployment claims (expected -12,000 to 230,000, previous +24,000 to 242,000) and continuing claims (expected +35,000 to 1.843 million, previous -64,000 to 1.808 million), (2) Mar import price index (expected +0.1% m/m and +3.8% y/y, Feb +0.4% m/m and +3.5% y/y) and Mar import price index ex-petroleum (expected +0.2% m/m, Feb +0.5% m/m), (3) USDA weekly Export Sales, (4) Treasury auctions $13 billion of 30-year T-bonds, (5) Minneapolis Fed President Neel Kashkari (non-voter) speaks in moderated Q&A in Minneapolis.