Daily Market Color June 7, 2017Stocks Rebound, Treasurys Slide with Comey Testimony, ECB Decision, UK Election on Horizon Risk-off trading in US financial earlier in the week reversed course a bit today, following the release of former FBI Director James Comey’s written testimony to be presented before Congress tomorrow. The text formally documented Comey’s past interactions with President Trump, which totaled nine conversations over a four-month period dating back to January. The information in the file was absent of any further negative implications for Trump, his advisors or his campaign, and was viewed positively by markets heading into the formal testimony tomorrow. US Treasurys sold off, with yields/swap rates up 1-4 bps across the curve, while stocks edged 0.15%-0.35% higher for the session despite being weighed down by a 1.5% fall in energy stocks. Also on the radar for tomorrow is the pending ECB policy decision release which will be followed by comments from Mario Draghi, where investors will look for insight into the ECB’s inflation views and in turn, expectations for the eventual removal of the region’s monetary accommodation. Lastly on the docket for tomorrow is the U.K. general election, for which polls currently show incumbent Prime Minister Theresa May with a 6-point lead over the opposition Labour Party. A win for Theresa May would likely further calm investor jitters, as a major shift in the nation’s leadership could significantly impact the outlook for future Brexit negotiations. Oil prices tumbled today following the Energy Information Administration’s (EIA) release of US crude inventories for the weekend ended June 2nd. The data displayed an unexpected 3.3-million barrel build in stockpiles, where expectations had called for a 3.5-million barrel drawdown, representing the first weekly increase in the past nine weeks. The current 513.2 million stockpile is 2.3% higher than the level from a year earlier. Gasoline inventories also posted a surprise increase last week, up 3.3 million barrels to 240.3 million. In reaction to the data, both WTI and Brent crude futures plummeted 3.75%-4.75% and are currently trading at one-month lows at $46/barrel and $48.25/barrel, respectively.