From: Sent Mon 3/3/2014 10:57:58 AM Subject Early Tour 3.3.14 Good Morning ... European Markets off 1.4% -2.0% (DAX -2.4%, MICEX -9.5%) ... NKY -1.27%, SHCOMP +0.92%, HSI -1.47%, KOSPI -0.77%, TWSE -0.44%, ASX -0.38% EUR 1.3781 (-0.16%) JPY 101.29 (+0.50%) EUR/JP 139.58 (-0.66%) RUB -1.73% NZD -0.32% US 10yr 2.606% Futures: Dow -123, Nasdaq 45, S&P -17 DXY $79.83 (+14c) Crude $104.06 (+$1.47) Gold $1344.60 (+$23.00) Copper -0.66% Silver +1.17% Nat Gas +2.15% Asian markets started the month off lower on geopolitical concerns following developments in the Ukraine over the weekend. Reports of a North Korean missile test before the opening also weighed on sentiment. SHCOMP bucked the trend as it rallied ahead of the CPPCC later today with headlines on SOE reform (Guangdong SASAC removes SOE ownership limits) and Capital Market Reform (Preferred Shares program and investor compensation fund in the works) driving the mainland market higher. Hong Kong finished lower, however, as the official China Feb Manufacturing PMI (50.2 vs est 50.1) and HSBC PMI (48.5 vs est 48.5) continue to show a slowdown in the China economy (note the non-manufacturing PMI ticked up to 55.0 from 53.4). Japan was weaker as reflation plays and exporters came under pressure with the Yen strengthening. In Europe, Russia's Micex getting hit -9.5% after the escalating the situation in the Ukraine over the weekend. The Russia central bank raised its key rate 150bps to 7.0% this morning to prevent inflation risks and ensure financial stability. John Kerry will be making his way to Kiev today as Western leaders weigh their response against Putin. Thus far the G7 has suspended its preparatory planning for the G8 Summit scheduled for June in Sochi and John Kerry suggested on Meet the Press yesterday that there ultimately could be economic sanctions, asset freezes, and visa bans imposed. European markets generally lower by 1.0-2.0% with those countries and companies with the most