Morning Update – 02/06/2017 – by Arjun Lakhanpal

June 2, 2017 by

Morning all.. Wall St rallied and posted another record close with the S&P up 0.76% at 2,430 which inspired the Nikkei to surge and close above 20,000 for the first time since 2015 closing up 1.83% on the day and helped by a rise in USDJPY. USDJPY made a high in Asia of 111.73. The MSCI Asia Pacific Index traded at the highest level in two years. The dollar held on to gains triggered by a report showing companies added more workers to U.S. payrolls in May than forecast. The onshore yuan retreated after a four-day surge as China’s central bank kept its daily yuan fixing level little changed. Concerns over global markets remain, with U.S. inflation trailing expectations. With investors primed for an interest-rate increase at this month’s Federal Reserve meeting, all eyes will turn the  U.S. Non-farm payrolls data and earnings. Elsewhere in FX the dollar was rather flat as US 10yr yields failed to rally and remain at 2.22% with oil down 0.5%. GBP is little changed but Britain Elects UK Election Nowcast Poll Aggregator: Conservatives 362 seats(+32) Labour 206 (-26) SNP 47(-9) Lib Dem 11(+3) UKIP 0(-1); “ nowcast is not a picture of what will happen on polling day, due in a week’s time, but rather a snapshot as to how the nation would vote if the election were held today”.. Times: Labour will try to form minority govt & rely on SNP votes to implement its policies in event of hung parliament. Pres Trump (Paris Accord withdrawal conf): confirms withdrawal; will begin negotiations to re-enter Paris accord or new accord on terms fair to US. Data overnight saw Japanese May Consumer Conf 43.6 vs 43.5 consensus. This morning we get Spanish & Norwegian Unemployment, UK Construction PMI and EU PPI but the main event is the US Non-farm payrolls data later.  Good luck..