Europe

Washington Has Crossed Russia’s Red Line

Paul Craig Roberts

According to Bank of America's Michael Hartnett, citing EPFR data, in the latest week through April 5, there were $7.4BN in outflows from equities, the largest in 40 weeks. At the same time, bonds recorded $12.4 BN of inflows, the highest in 8 weeks, with Treasuries posting largest inflows in 10 weeks as the "great reflationary rotation" crumbled once again. Curiously, this took place prior to the FOMC Minutes warning that stock prices are "too high."

First down after the Syrian air strikes, then up (within minutes after the open) despite a poor jobs number, then down once more on the latest "Truck Terroist", now going back up again, stocks can't make up their mind this morning what to do.

Update 11:02 am: Another statement from the Swedish police, which said it currently cannot rule out that attack in Stockholm is an act of terror, given recent events in the rest of Europe.  The police refutes a previous report, and say that no one has yet been arrested. They also note that there are reports of gun shots from different parts of Stockholm, although police can’t currently confirm those.

They add that many people are injured, and there are also deaths and that as reported earlier, Stockholm’s central station has been evacuated

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After initially tumbling in the aftermath of the U.S. missile attack on Syria which jolted financial markets, boosting haven assets and temporarily shifting investor focus from today's jobs data , S&P futures have managed to recoup all losses (the Nikkei closed up 0.4% after sliding earlier in the session), with Europe also just fractionally lower and climbing fast.