A380

With traders realizing that the "Thursday Turmoil Trifecta" looms, world stocks dropped and safe-haven assets rose as investors focused on the growing tension in the Middle East, while caution spread across markets in a week full of risk events including James Comey’s congressional testimony to the ECB’s policy meeting and Britain’s increasingly uncertain election, all in the span of 24 hours. As a result, European and Asian stocks as well as S&P futures all fell, while gold, yen and Treasuries gained.

The datapoints that suggest the market for new airplanes is underoing a severe repricing shock kept coming overnight, when just two days after Iran announced it had negotiated the "$16.6 billion" purchase of 50 737 planes and 30 777 aircraft at half the sticker price, and one year after we revealed that a used Boeing 777 can be purchased for as much as 97% off, overnight Delta Air Lines said that it would scrap an order for 18 787 Dreamliner aircraft, valued at more than $4 billion at list prices, which the company assumed as a part of its merger with Northwest Airlines.

While the prevailing dour (or perhaps sour) overnight mood was a continuation of the weak oil theme which started yesterday after Iran said the production freeze proposed by Saudi and Russia as "ridiculous", and Saudi oil minister Al-Naimi said that Saudi won't cut supply and that high-cost producers need to either "lower costs, borrow cash or liquidate” (ideally the latter), risk sentiment was further dented when BOJ Governor Kuroda says he won’t target FX rates or stocks, which is clearly nonsense, and further spooked Japanese asset prices (Nikkei -0.85), while s