Warships Are En Route To The Suez Canal - Futures Have Barely Sold Off So Far

Morning Notes

– Somewhat lackluster performance overseas
– China came out with some relatively strict property policies geared to curb property speculation- 15 new measures were implemented
– New property measures hurt property stocks in China
– Nonetheless, Shanghai Comp was able to closed in the green, albeit marginally
– Hang Seng, which has less real estate exposure than the Shanghai Comp, closed up 60bps
– Upbeat earnings in Japan helped boost stocks, and the Nikkei closed up 30bps, which actually puts the Nikkei up >6% YTD
– S&P futures are similar to yesterday in the premarket- down about 3.5 handles from FV
– Initial Jobless Claims: 410K vs. 408K; prior revised up to 385K from 383K
– Continuing Claims: up to 3.911M from 3.910M
– Core CPI m/m: +0.2% vs. +0.1%; prior was +0.1%
– CPI m/m: +0.4% vs. +0.3%; prior was +0.4%
– Headlines crossed the tape that an Iran Navy official confirmed that two warships are on the way to the Suez canal
– Futures reacting negatively to this news while brent crude rallied
– European markets are flat to down small
– On the economic calendar for the rest of today: Leading Indicators at 10a; Philly Fed at 10a

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