June E-mini S&Ps (ESM15 -0.66%) this morning are down -0.63% and European stocks are down -1.17%, both at 1-1/2 week lows, after Saudi Arabia led a coalition of 10 Sunni-ruled nations in air strikes against Shiite Houthi rebels in Yemen. Airline stocks are lower in pre-market trading as crude oil surged to a 2-1/2 week high. Asian stocks closed mostly lower: Japan -1.39%, Hong Kong -0.13%, China +0.24%, Taiwan -0.50%, Australia -1.58%, Singapore +0.37%, South Korea -1.14%, India -2.33%. Commodity prices are mostly higher. May crude oil (CLK15 +4.10%) is up +3.70% and May gasoline (RBK15 +2.07%) is up +1.77%, both at 2-1/2 week highs, on concern the Yemen conflict could disrupt global crude oil supplies. Yemen is located on the Bab el-Mandeb strait that links the Gulf of Aden and the Red Sea, the fourth-biggest chokepoint for crude supplies in the world. According to the EIA, about 3.8 million bpd passed through Bab el-Mandeb in 2013 and a closure of the strait would force tankers to sail around the southern tip of Africa to reach European, North American and South American markets. Apr gold (GCJ15 +0.94%) is up +0.86% at a 3-week high on increased safe-haven demand due to an escalation of violence in Yemen. May copper (HGK15 +1.50%) is up +1.49%. Agriculture prices are higher. The dollar index (DXY00 -0.47%) is down -0.51% at a 3-week low. EUR/USD (^EURUSD) is up +0.35% at a 3-week high. USD/JPY (^USDJPY) is down -0.65% at a 1-month low as the conflict in Yemen boosted the safe-haven demand for the yen. Jun T-note prices (ZNM15 +0.02%) are up +4.5 ticks.
German Apr GfK consumer confidence rose +0.3 to 10.0, stronger than expectations of +0.1 to 9.8 and the highest since the data series began in 2005.
Eurozone Feb M3 money supply rose +4.0% y/y and +3.8% 3-mon avg, weaker than expectations of +4.3% y/y and +4.0% 3-mon avg.
UK Feb retail sales ex-autos rose +0.7% m/m and +5.1% y/y, stronger than expectations of +0.4% m/m and +4.2% y/y. Feb retail sales including autos rose +0.7% m/m and +5.7% y/y, stronger than expectations of +0.4% m/m and +4.7% y/y.
