Oil Supply Threatened - Finally Middle East Protests Pull Down Markets

Morning Notes

– Unrest in Middle East has been enough to push down markets
– Libya threatens to cut off oil supply in its entirety should protests continue; hence, oil and oil stocks are up notably
– Several major oil producers have suspended ops in Libya due to the turmoil there
– Inflation concerns in China as a result of potential oil restriction
– Shanghai Comp down 2.6% while Hang Seng closed down 2.1%
– Japan’s outlook cut to negative from stable at Moody’s
– Yen has weakened, yet Nikkei closed down 1.8%
– There was an earthquake in New Zealand (6.3 magnitude)
– Dollar, gold, bonds are seeing a lift- flight to safety plays
– On economic calendar for today: Case Shiller out at 9a; CB Consumer Confidence at 10a
– S&P futures are down 16 handles from FV ahead of the open


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