Stock Market Update

Equity futures point to a lower opening this morning as tensions between the U.S. and Iran are escalating ahead of tonight's 8:00 p.m. ET deadline for striking a deal.

Stocks are coming off a quiet session that offered little in the way of new geopolitical developments, with the major averages notching modest gains as oil prices saw just a modest bump. Sentiment has shifted this morning, with The Wall Street Journal reporting that negotiators are no longer confident that a deal can be reached before tonight's deadline, which President Trump has threatened will result in the bombing of Iranian power plants and bridges.

Bloomberg reports that the U.S. and Israel have already initiated another wave of strikes against Iran, with Axios reporter Barak Ravid adding, "The U.S. military conducted strikes on military targets on Kharg island, U.S. official says."

Crude oil is currently up $2.48 (+2.2%) to $114.89 per barrel.

Corporate news flow is once again on the lighter side as geopolitical developments take center stage.

On the data front, investors will receive February Durable Orders (Briefing.com consensus 0.5%) at 8:30 a.m. ET, and February Consumer Credit (Briefing.com consensus $7.0 billion) at 3:00 p.m. ET.

In corporate news:

• SpaceX is considering a June roadshow for its IPO, according to Reuters.
• Anthropic is in discussions to invest $200 billion in a private equity venture, according to The Wall Street Journal.
• Apple's (AAPL 256.53, -2.33, -0.9%) foldable iPhone could have shipment delays due to engineering issues, according to Nikkei.

Equity indices in the Asia-Pacific region ended Tuesday on a higher note while Hong Kong's Hang Seng remained closed for Easter. Japan's Nikkei: UNCH, Hong Kong's Hang Seng: HOLIDAY, China's Shanghai Composite: +0.3%, India's Sensex: +0.7%, South Korea's Kospi: +0.8%, Australia's ASX All Ordinaries: +1.7%.

In news:

• Japan sold 30-yr JGBs to weak demand despite a downsized auction.
• South Korea's policy chief said that South Korean chip fabricators have secured a four-month supply of helium.
• Samsung Electronics reported record results for Q1.
• The Reserve Bank of New Zealand and Reserve Bank of India will opine tomorrow, but policy changes are not expected.

In economic data:

• China's March FX Reserves $3.342 trln (expected $3.400 trln; last $3.428 trln)
• Japan's February Leading Index 112.4, as expected (last 112.1) and Coincident Indicator -1.6% m/m (last 3.4%). February Household Spending 1.5% m/m (expected 2.6%; last -2.5%); -1.8% yr/yr (expected -0.8%; last -1.0%)
• Australia's March Services PMI 46.3 (expected 46.6; last 52.8). March MI Inflation Gauge 1.3% m/m (last -0.2%) and March ANZ Job Advertisements -3.1% m/m (last 3.2%)

Major European indices trade in mixed fashion after a four-day Easter weekend. STOXX Europe 600: -0.2%, Germany's DAX: -0.2%, U.K.'s FTSE 100: -0.1%, France's CAC 40: +0.53%, Italy's FTSE MIB: +0.3%, Spain's IBEX 35: +0.2%.

In news:

• European Central Bank policymaker Wunsch said that a lasting crisis could invite a series of rate hikes, and that he is open to a hike later this month while policymaker Radev said that it is too early to tell if an April rate hike is needed.
• Final March Services PMI readings from the region's major economies were mostly better than expected, though Italy (48.8) and France (48.8) reported contractionary readings.

In economic data:

• Eurozone's March Services PMI 50.2 (expected 50.1; last 51.9). April Sentix Investor Confidence -19.2 (expected -7.5; last -3.1)
• Germany's March Services PMI 50.9 (expected 51.2; last 53.5)
• U.K.'s March Services PMI 50.5 (expected 51.2; last 53.9)
• France's March Services PMI 48.8 (expected 48.3; last 49.6)
• Italy's March Services PMI 48.8 (expected 51.0; last 52.3)
• Spain's March Services PMI 53.3 (expected 50.7; last 51.9)
• Swiss March Foreign Reserves $721.2 bln (last $710.1 bln)