China

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• Uber CEO Kalanick Quits as Investors Revolt (WSJ)
• Saudi King’s Surprise Shakeup Clears Son’s Path to the Throne (BBG)
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• Latest Election-Hacking Hearings to Focus on State-Level Events (WSJ)
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• Oil Returns to Bear Market (WSJ)
• Brexit Dominates May's Program as Some Manifesto Pledges Ditched (BBG)

In an eventful overnight session which saw a historic transition in Saudi Arabia, an unexpected Republican victory in the Georgia Special Election, China's inclusion in the MSCI EM index and Travis Kalanick's resignation, S&P futures continued to fall, alongside stock markets in Asia and Europe, while oil prices extended their drop despite a larger than expected draw reported by API on Tuesday.

For the 10th day in a row, China's bond yield curve remains inverted (the longest in history).

With yields at 3-year highs, corporate bond issuance is evaporating, and has now emerged as the latest major, and most imminent, threat facing China's financial sector and $10 trillion corporate debt market.

However, it appears Chinese authorities have reached their max pain point.

After three consecutive unsuccessful attempts by China to have its A Shares included in the MSCI Emerging Market index, moments ago the fourth time proved to be the charm, when MSCI finally relented and agreed to add China's A shares to the much desired index.

European stocks were flat after starting off strongly earlier, dragged lower by energy stocks. Asian stocks, U.S. futures little changed as oil tumbled with Brent tumbling as low as $45.85/bbl to the lowest intraday since November 30 and taking out a 38.2% Fib support, after a one-minute spike in volume to a day-high 5,208 lots just after 6am, with WTI mirroring Brent's momentum, and falling as much as 98c to $43.22, lowest since November 14.