- Stocks were down sharply across Asia. The Hang Seng was off by 3.5%, the Nikkei and Australia both lost three percent and Shanghai was down almost two percent. The Kospi lost 2.75%, in part because of rising tensions with North Korea and, it should be noted, that their currency, the Won, was also hit hard and is now down ten percent in the last week versus the dollar. Europe is also weak, with the Dax and Footsie both currently trading lower by about two and three quarters percent. US stock futures are lower by at least two percent as I write.
- The April reading of China's Leading Economic Index slipped a fraction to 104.36 and is now at its lowest level since last August. The China/US talks seem to be going well, China has confirmed that reform of their FX regime is in their own interest, but any changes will be made on their schedule and not a US timeline.
- The first revision to the UK Q1 GDP now shows growth to have been +0.3% on a quarter on quarter basis, one tenth more than previously reported.
- The dollar/euro traded as low as 1.2178 overnight, currently trading at 1.2200, down about 165 pips from yesterday's US close. Remember the recent low is 1.2144 and the life of currency mid-point is 1.2134.
- The weekly report on chain store sales from ICSC showed that sales were down 0.8% on a week to week basis for the week ended May 22, the third weekly decline in the last four weeks. Sales were up 1.3% for the week when compared to the corresponding week from a year ago. The Johnson Redbook report on the same thing is due out at 7:55am CDT.
- The Treasury plans to sell $42 billion 2 Year Notes today, the results will be announced just after noon CDT.
Disclosure: no positions