World Markets Live - April 7 - CNBC Live Events
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World Markets Live - April 7

We’ll be updating you throughout the day with essential breaking news, data alerts, earnings reports and all the major market movements.

  • The Pentagon confirmed the U.S. military gave Russia advance notice of the strike and did not target specific sections of the airfield where Russian forces were believed to be present. 

    Speaking to reporters after the strike, U.S. Secretary of State Rex Tillerson said Russia has failed to uphold its responsibility to locate and secure Syria's chemical weapons, as agreed upon in a 2013 resolution.  
     
    Meanwhile, the Kremlin has condemned the U.S. military action, saying the act of aggression against a sovereign nation violated international law and has dealt a blow to Russian-American relations.
     
    It added that the Syrian army does not possess chemical weapons and that the U.S. attack was an attempt to distract the world from civilian deaths in Iraq. Russia has reacted by suspending its Air Safety agreement with the U.S.and has called for a UN security council meeting. 
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  • Russian state TV says nine planes were destroyed by the U.S. strikes on a Syrian air base, Reuters reports.
     
    It showed images of bombed air base, as well as images of craters and rubble. It says the runway was almost undamaged.
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  • Christopher Granville, managing director EMEA and global political research at TS Lombard, highlighted that the Kremlin’s spokesman said U.S. airstrikes were carried out on a “far-fetched pretext.”
     
    Russia does not accept as a given truth that on the 4th of April there was a premeditated chemical weapons attack by the Syrian regime. They point out in the same statement that the anti-Assad rebels, Jihadi rebels, have a track record of using chemical weapons themselves.
     
    And what they describe as a monstrous crime (that is the Russians describe it that way) the responsibility for that can only be established by an independent investigation.
     
    Granville says the risk of confrontation between Russia and the U.S. is greater because they have completely different viewpoints and understanding of what happened.
     
     
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  • The pan-European Stoxx 600 is currently down around 0.34 percent.
     
    For the week, the first of the second quarter, the index is down about 0.4 percent.
     
     
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  • In the latest French election polls, Emmanuel Macron appears to be in a dead heat with his far-right rival Marine Le Pen following this week's TV debate.
     
    Le Pen is leading with 24.5 percent support, followed by Macron at 24 percent. 
     
    The major French presidential election candidates, from left to right: Francois Fillon, Emmanuel Macron, Jean-Luc Melenchon, Marine Le Pen, and Benoit Hamon.
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  • This is what some of the citizens of France have to say about Marine Le Pen and her far-right party.

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  • Viktor Nossek, director of research at WisdomTree, says there are three scenarios in the French presidential elections.
     
    The first scenario is really one where the status quo prevails. In terms of expectations, Macron will succeed in going through the first round, and essentially it’s a risk on trade. You want to piling into the equity markets and play the widening spreads in bond markets.
     
    The second scenario sees Le Pen winning the election, which would lead to a risk-off trade. In the third, it will either be Fillon or Macron and the risk trade will be somewhere between the other scenarios.
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  • U.K. industrial output in February fell 0.7 percent month on month, versus expectations of 0.2 percent growth.
     
    Year on year, output grew 2.8 percent, below expectations of 3.7 percent growth.
     
    Manufacturing output fell 0.1 percent, below expectations of 0.3 percent.
     
    Construction output also fell, down 1.7 percent. 
     
    Also, the U.K.'s global goods trade deficit came to £12.461 billion, well above expectations of £10.9 billion.
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  • Sterling is taking a dip following the weaker than expected industrial data.
     
     
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  • Russia's Foreign Affairs Minister Sergey Lavrov says U.S. strikes on Syria are acts of aggression.
     
    He says the strikes remind him of the west's attack on Iraq in 2003 without UN approval, Reuters reports.
     
    Lavrov adds that Moscow will demand an explanation from the U.S. over the air strikes and hopes this "provocation" will not lead to irreparable damage to ties between Russia and the U.S.
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  • Enrico Letta, former prime minister of Italy, says Hollande and Merkel are right to voice their support for the U.S. air strikes.
     
    There’s a unique guilt in this adventure, which is of course Assad, but I have to say also that the reaction of Trump seems to be a little bit too rushed. Without correct preparation, without allies, without relationships with the international organizations, so it seems to be rushed.
     
     
     
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  • Italy's foreign minister has joined the chorus of international voices commenting on the U.S. air strikes.
     
    Paolo Gentiloni Silveri says he understands the U.S. air strike, saying it was a reasonable reaction and deterrent to Assad's use of chemical weapons, Reuters reports.
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  • Senate Republicans have changed voting rules and have triggered what is described as "the nuclear option" over the vote of President Trump's nominee for the Supreme Court, Neil Gorsuch.
     
    This, after Democrats gathered enough votes to stage a filibuster. A simple majority vote will now be needed to approve Neil Gorsuch to the country's highest court, as opposed to the 60 vote threshold. A final confirmation vote is expected today. 
     
     
     
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  • Yesterday, the head of the House Intelligence Committee -- Devin Nunes -- stepped aside from leading the investigation into Russian election interference as ethics complaints trigger an investigation into Nunes himself. NBC's Kasie Hunt has more from Capitol Hill.

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  • The European Stoxx 600 remains in the red, down around 0.4 percent.
     
    The same story is apparent among the individual major bourses.
     
     
     
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  • Oil prices have jumped higher on geopolitical concerns following the U.S. air strikes on a Syrian air base.
     
    Brent and U.S. crude are up more than 1 percent. 
     
     
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  • Bank of England Governor Mark Carney has written a letter calling for a U.K.-EU rules pact after Brexit.
     
    He says Brexit talks will be a litmus test for responsible financial globalisation. He says trust and robust standards can create a system of mutual deference between the U.K. and EU, and such as system could be used as a template to benefit the global economy, Reuters reports.
     
    However, he also warns that regulators must prepare for the risk that no Brexit deal is reached. Also, EU firms using "passporting" rights to access the U.K. market must prepare contingency plans if these rights are not secured by a deal: they will have to seek the Bank of England's authorisation and possibly create subsidiaries.
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  • President of the European Council Donald Tusk says U.S. air strikes on Syria show "needed resolve" against the use of chemical weapons.
     
    He says the European Union will work with the U.S. to end "brutality" in Syria, Reuters reports.
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  • Other safe-have assets are in demand on rising geopolitical tension following the U.S. strike on Syria.
     
    Prices for U.S. Treasuries are higher today on the demand (yields move inversely to prices).
     
     
    Meanwhile, the Japanese yen is up against the dollar, euro and sterling on the demand.
     
     
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  • Italian Prime Minister Paolo Gentiloni says Italy, France and Germany believe there must be a negotiated solution to the Syrian conflict.
     
    He adds these negotiation must include the United Nations and Russia, Reuters reports.
     
     
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  • Some key data points to watch today.
     
    At 8:30 a.m. ET we'll have the U.S. nonfarm payrolls figure for March. Expectations are 175,000 jobs were created during the month, after 235,000 were created in February.
     
    At that time we'll also have average hourly wages, which was expected to show 0.2 percent growth, as well as the unemployment rate, which is expected to remain at 4.7 percent.
     
    At 10 a.m. ET we'll have wholesale trade data for February. A growth of 0.2 percent is expected after a contraction of 0.2 percent the month before.
     
    Then at 3 p.m. ET we'll have February's consumer credit reading. Consumer credit is expected to have grown by $14.5 billion, after a rise of $8.8 billion in January.
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  • The Bank of England Governor Mark Carney says he is not seeking a separate U.K.-EU financial services deal under Brexit and adds that financial services are an important sliver of wider Brexit discussions, Reuters reports.
     
    Speaking to reporters at Thomson Reuters, he says the banks have been putting in sophisticated contingency plans for some time.
     
    Carney goes on to defend London' status as a financial capital, saying there are tremendous advantages to being part of the world's leading financial system in the U.K.
     
    He adds that it would be very difficult to replicate London's expertise in financial services.
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  • Russia's defence ministry says four Syrian soldiers were killed, six wounded and two missing following U.S. air strikes.
     
    The ministry says militants launched an offensive on Syrian army positions immediately after the strikes, Reuters reports citing agencies.
     
    The ministry claims the air strikes had "extremely low" military effectiveness: only 23 missiles hit their targets, it is not clear where 36 others landed.
     
    Also, the ministry said there are now plans to strengthen Syria's military air defences.
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  • The latest polls on the French presidential election are in, and are not much changed.
     
    Marine Le Pen is expected to get 25 percent in the first round, Macron would get 24 percent and Fillon 20 percent, according to the latest Opinionway Poll.
     
    Macron is seen beating Le Pen in the second round 62 percent to 38 percent, while Fillon would beat Le Pen 57 percent to 43 percent.
     
     
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  • U.S. stock market futures fell sharply after the first reports of U.S. air strikes on Syria.
     
    Now, the future values have recovered and look set for a fairly flat open, just a few points to the downside.
     
     
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  • CNBC has compiled the reactions to the U.S. air strike. Some call it a violation of international law, others describe it as an understandable action.
     
    CNBC's Silvia Amaro and Sam Meredith report. Click here to read more.
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  • Deutsche Bank announces it has successfully completed its 8.08 billion euro capital increase. It says the take up of subscription rights was 98.9 percent.
     
    The bank's CET1 capital ratio has increased from 11.8 percent to 14.1 percent.
     
    Shares have rebounded on the news, are now up 0.41 percent.
     
     
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  • Mark Carney, Bank of England governor, says the central bank's forecasts include some moedst removal of policy stimulus. 
     
    He says there are some signs of strength in consumer demand coming off, and the bank is monitoring the situation, Reuters reports.
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  • Jeroen Dijsselbloem, president of the Eurogroup, says a meeting of European Union finance ministers in Malta has reached an agreement on overarching elements of Greek reforms.
     
    The agreement is on 1 percent of GDP reform in 2019 and another 1 percent of GDP in 2020. The 2019 reforms will be focused on pensions and the 2020 reforms will be on income tax.
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  • French industrial production fell 1.6 percent month on month in February, weaker than expected. 
     
    Francois Cabau, from Barclays, shares his view on the data.
     
    Declining for a third consecutive month, the level of industrial output is at the average since early 2014, largely pointing to undecisive momentum. As expected, the bulk of the weakness was in energy output while manufacturing also contributed to the negative picture. 
     
    Manufacturing output also fell for the third consecutive month, largely driven down by coke and refined petroleum products (owing to a maintenance in a refinery) and computer/electrical equipment. 
     
    Cabau says the bank is reluctant to revise down GDP growth for France on this data, as net trade or inventory stockbuilding is likely to offset a temporary blip in consumption.
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  • We're near the midday point and the Stoxx 600 remains flat, currently down about 0.37 percent.
     
    These are the sectors weighing on the index. Oil and gas stocks are up as crude prices rise around 1 percent on geopolitical concerns. Telecoms and basic resources are weighing on the sector.
     
     
     
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  • The ECB's Coeure says the agreement on Greece achieved earlier today will pave the way for debt sustainability analysis, Reuters reports.
     
    Coeure also said investment in the euro zone is growing but still below pre-crisis levels and is diverse across the area.
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  • Weak U.K. economic data is weighing on sterling today. The currency has hit a one-week low of $1.2415 and is currently down almost 0.4 percent.
     
    Over the past week, the currency has dropped more than 1 percent against the dollar.
     
     
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  • Protests are taking place across South Africa against President Zuma, who has made several unpopular decisions in recent weeks.
     
    A Reuters witness claims South African police have fired rubber bullets and tear gas during clashes with protesters in Johannesburg.
     
     
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  • The U.S. decision to bomb Syrian airbases marks a sharp shift in the role played in the U.S. in the Syrian conflict, says Torbjorn Soltvedt, principal MENA analyst at global risk consultancy Verisk Maplecroft.
     
    The airstrikes have been framed strictly as a message to deter the use of chemical weapons in Syria and beyond. Still, having now struck directly at Assad, Washington will be faced with a series of tough questions over how to proceed from here.
     
    There is nothing to suggest that there is any appetite in the White House for forcibly removing Assad from power. 
     
    The Syrian war will continue unabated, however, and further regime atrocities are highly likely even if chemical weapons are not used again. Escalation management in this environment will be extremely difficult, especially with so many external actors involved.       
     
    Soltvedt adds that the airstrike dents the Islamic State's propaganda efforts: after Obama chose not to make a military response in 2013, Islamic State used this decision to drum up local support.
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  • Risk sentiment remains negative following the U.S. air strike in Syria. Investors are also waiting for the March nonfarm payrolls data to find out how many jobs the U.S. economy created last month.
     
    The data will be released at 8:30 a.m. ET
     
     
     
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  • The latest polls for the German elections show Chancellor Angela Merkel's party winning 35 percent of the vote, with the social democrats winning 32 percent. That's according to poll data from the broadcaster ZDF.
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  • Another forthcoming but less covered election is a Turkish referendum being held on April 16. The vote could give greater powers to the country's President Recep Tayyip Erdoğan. 
     
    Wolfango Piccoli, co-president of Teneo Intelligence, warns that whatever the outcome, Turkey’s political trajectory and the outlook for structural reforms will remain negative.
     
    Whatever the outcome, neither will it help to resolve Turkey’s mounting political, social and economic challenges nor will it provide any meaningful prospects of respite from the growing authoritarianism and confrontational populism propelled by Erdogan. The result of the referendum will, however, largely determine the next phase of political turbulence and possibly shed light on the duration of Erdogan’s rule.
     
    A Yes vote is seen as more likely and would lead to further constitutional changes. President Erdogan may call for snap elections in the even of a Yes vote.
     
    A No vote would represent a humiliating but not fatal defeat for Erdogan. Piccoli says it would trigger further political turbulence as a cabinet reshuffle and a snap parliamentary election would be likely to occur.
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  • Greece's finance minister says the measures agreed at today's meeting in Malta will be legislated within coming weeks.
     
    Euclid Tsakalotos says the deal includes reviving collective agreements from September 2018, according to Reuters. Tsakalotos adds that collective firings will not be liberalised further in labour reforms.
     
    He adds that if Greece meets its targets in 2019, measures to offset the impact of austerity will be implemented.
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  • Mihir Kapadia, CEO and Founder of Sun Global Investments, analyses the move in markets after U.S. attacks on Syria:                                                                                                                                                                             
    We were casually expecting Friday markets to be calm ahead of the March U.S. monthly jobs report and the first Sino-American summit since Donald Trump took office. However the news of U.S. led airstrikes in Syria have dominated markets this morning .The markets have been little jittery with stocks and EM bonds selling off, while oil, gold and developed country bonds gaining. Oil Futures in New York and London surged 1.6% to the highest in a month, while Gold added more than 1% to $1264 an ounce, its highest level since November.
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  • Euro hits three-week low of $1.0624, down 0.2 percent on day:
     
     
     
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  • Germany's Merkel says U.S. attack on Syria is understandable given the suffering of innocent people. Merkel says must work for political situation in Syria. That's according to Reuters.
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  • Syrian Presidency calls U.S. attack a "rash" action, says Washington was naively dragged in by a false propaganda campaign. The Syrian Presidency says U.S. "aggression" has increased its resolve to attack "terrorist agents", and to increase pace of action against them. 
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  • Russian lawmaker says Russian Latakia Air base and Tartus naval base are protected by S-300 and S-400 missile complexes. That's according to the RIA.
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  • U.S. job growth likely slowed in March after unseasonably mild weather boosted hiring over the prior two months, but the pace of gains should underscore the economy's strength despite a recent slowdown in economic growth. That's according to Reuters.

    Nonfarm payrolls probably increased by 180,000 jobs last month, according to a Reuters survey of economists, near 2016's 187,000 monthly average job growth. The unemployment rate is forecast to be unchanged at 4.7 percent.

    The Labor Department will release its closely watched employment report on Friday. Readings in line with expectations would reinforce views the economy's fundamentals remain solid despite gross domestic product appearing to have slowed to around a 1.0 percent annualized growth pace in the first quarter after rising at a 2.1 percent rate in the final three months of 2016.
     
    Source: Trading Economics
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