Friday, March 2, 2018

Good morning-  Global stocks are all getting whacked after President Trump announced tariffs of 25% on imported steel and 10% on aluminum for “a long period of time.” European equities followed Asian markets lower after US stocks took a nosedive yesterday afternoon. Right now, the Stoxx 50 is down 55 points, the DAX is down 229 points, and the FTSE is down 63.5 points. In Asia, the Nikkei and Hang Seng are down 322 and 426 points respectively. US stock futures are extending their decline with the DOW down 209 points, the S&P down 15 points, and the NASDAQ down 67 points. WTI crude dropped for a 4th straight day, trading at $60.89/bbl. With respect to rates, treasury yields are 2-4bps higher across the curve in steepening fashion bringing the 10yr UST up to 2.833%. Credit is softer to start the morning as issuers continue to pay elevated concessions to price deals. Today’s economic data is limited to UMich surveys.