* Dow closed down 157 or -0.62% as investors worried a trade war could develop after Trump implemented tariffs on steel and aluminum imports, with worries other countries could retaliate by imposing tariffs on U.S. goods . The S+P -0.1%.
* Asian markets mixed, NIKKEI +0.7%, S&P/ASX -0.4 %, China -0.4 % as global trade war fears returned.
* Overnight data saw Japan PPI flat lower than the +0.2% expected and rose 2.5%yy.
* ECB Coeure calls growth “very positive”, while inflation would still be lagging. Says ECB never has discussed rate hike in mid-2019, calls trade war a “major risk”.
* UK has given Russia until tonight to explain itself and is eyeing retaliatory measures after what PM May called a “military grade” chemical attack on former spy.
* ECB Draghi tells Eurogroup FinMins that sufficient risk reduction has taken place, now discussions on European Deposit Insurance Scheme could begin.
* US Pres Trump justifies decision to block Broadcom’s $142bn bid for Qualcomm with national security considerations. While Broadcom is registered in Singapore, it claims to be a US company “in all important respects”.
* US Pres Trump says he is “very serious” about second stage of tax cuts.
* British Brexit negotiators are closing in on securing a deal on the transition period and have surprised the EU with their “strong will” to strike an agreement to effectively prolong Britain’s membership of the single market and customs union for about 2 years after March 29 2019.
* Euro zone creditors are expected to disburse new loans to Greece this month and are working on debt relief measures, the head of the bloc’s finance ministers said.
* Canada exemption from Trump’s tariffs have nothing to do with talks on the NAFTA Canadian PM Justin Trudeau told CNBC.
* Interest rates on some Australian home loan products have fallen by 50bp a move that would come as a welcome relief for highly indebted households but may be at odds with the RBA policy.
* US Sec of State Rex Tillerson issued a harsh condemnation of Russia following a nerve agent attack going further than the White House’s response.
* Spanish CPI at 8am, Italian unemployment at 9am.
* Holland,Spain,Italy all come to the market today with government debt issuance.
* US NFIB small bus optimism at 11am, US CPI at 12.30pm and then the 30year auction at 5pm.