Stock markets overseas had already been falling overnight on their return to trading from the Easter holiday weekend when surprise UK election news added gasoline to the flames of political uncertainty. The escalating war of words over North Korea with US VP Pence visiting East Asia, and the close 4 way race in France ahead of Sunday's first round of Presidential election voting. The CAC is trading down 1.4% compared with a 0.7% decline for the Dax. US index futures are down 0.25% as they start to give back Monday's 0.9% gains.
Today, UK PM May announced that she plans to table a bill tomorrow to call for a snap election to be held on June 8. Labour has indicated they would support the call. The government is hoping through the election to strengthen their mandate heading into Brexit talks, and to test the suport of those who oppose the plan. On the news, sterling is soaring indicating traders favour the move, while the FTSE has dropped 1.3% due to the currency rally.
Crude oil is down again today, falling 0.7% in a continuing trading correction with rising US supply getting the blame for the pullback. Falling oil has been dragging on oil sensitive currencies like CAD and NOK. Oil may remain active through tonight's API and tomorrow's DOE inventory reports.
Earnings season is in full swing this morning. So far, reports have been mostly positive with Johnson & Johnson (NYSE:JNJ), Bank of America (NYSE:BAC), Comerica (NYSE:CMA) Bank and Harley-Davidson Inc (NYSE:HOG) all beating the street but Goldman Sachs (NYSE:GS) coming in short of expectations. Later today results are due from Goldman Sachs, IBM (NYSE:IBM), Rogers Communications Inc (NYSE:RCI), and Yahoo! (NASDAQ:YHOO)
Economic reports due today include existing home sales for Canada plus industrial production, housing starts and building permits for the US.