What's Happening Today:
- U.S. based futures indicators are lower this morning following the global stock market sentiment in over-night sessions. The geo-political stage is front and center once again this morning following a missile launch last evening from North Korea that essentially flew over Japanese waters. Japan's Abe has called this an "unprecedented" event. The Japanese have requested an emergency UN security council meeting to address this latest round of North Korean act of aggression. A number of global political leaders and representative have already weighed in on the situation calling for refrain from military escalation. The impact on various asset classes is already in play as precious metals have seen a significant rise in price. Additionally, global yield have continued to drop as the safe harbor trade has been activated. As this remains a fluid situation, traders are mindful of headline risk as it pertains to commentary and punditry from political and market analysts.
- Domestically in the US, Hurricane Harvey continues to be a matter of concern on several different levels of impact including infrastructure, cost of remediation, and the effect on the population. The range of costs associated with the storm is now near the $100 billion mark with indication that the storm may provide greater damage than previously estimated. Energy traders are mindful of refinery and production impact and cost associated with shut downs and resumption of business.