Morning Call For Wednesday, March 22


Jun E-mini S&Ps (ESM17 -0.09%) this morning are down -0.07% at a 1-month low and European stocks are down -0.48% at a 1-week low amid uncertainty over the prospects that the Trump administration can pass its pro-growth policies. Top U.S. Republicans have warned that failure to repeal Obamacare could threaten the passage of the Trump administration's tax reform and infrastructure spending plans. Republican leaders said they are still short the votes needed to repeal and replace Obamacare when it comes up for vote in the House of Representatives on Thursday. Weakness in crude oil prices is also pressuring energy producing stocks with May WTI crude (CLK17 -1.16%) down -1.41% after API data late yesterday showed U.S. crude stockpiles rose by +4.53 million bbl last week. Asian stocks settled lower: Japan -2.13%, Hong Kong -1.11%, China 0.50%, Taiwan -0.50%, Australia -1.56%, Singapore -1.28%, South Korea -0.43%, India -1.08%. Japan's Nikkei Stock Index tumbled to a 5-week low as exporter stocks sold-off on reduced earnings prospects with a stronger yen after USD/JPY slumped -0.31% to a 3-3/4 month low.

The dollar index (DXY00 +0.04%) is down -0.01% at a 1-1/2 month low. EUR/USD (^EURUSD) is down -0.16%. USD/JPY (^USDJPY) is down -0.31% at a 3-3/4 month low.

Jun 10-year T-note prices (ZNM17 +0.14%) are up +7 ticks at a 3-week high as the slide in stocks boosts the safe-haven demand for T-notes.

Cleveland Fed President Mester said inflation is on track to continue moving toward the Fed's 2% goal and that she has built "a bit more than three" rate increases into her forecast for 2017.

The Japan Feb trade balance was in surplus by +813.4 billion yen, wider than expectations of +807.2 billion yen and the largest surplus in 6-3/4 years. Feb exports rose +11.3% y/y, stronger than expectations of +10.1% y/y and the biggest increase in 2 years. Feb imports rose +1.2% y/y, weaker than expectations of +1.3% y/y.

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