Morning Update – 04/09/2017 – by Arjun Lakhanpal

Morning all..On Friday, Wall St closed higher after some rather poor US unemployment and wage data with the S&P closing up 0.2%. But over the weekend Kim of N. Korea was firing off another missile and this one a huge jump in explosive power. Asian markets are far more nervous of this kind of action and all indices closed lower with the Nikkei down 0.9% and USDJPY fell to 109.50. . A magnitude 6.3 earthquake has been detected in North Korea, claimed by North Korean state media to be a successful test of a hydrogen bomb with “unprecedentedly big power”, with the capability to be loaded onto an intercontinental ballistic missile. The energy from the explosion was about six times stronger in force than the nuclear test last September. Derision from global leaders is beginning to hit the wires. In other news, as the latest round of Brexit talk concludes with minimal progress, Liberal Democrat leader Vince Cable has said there is a growing possibility of a second referendum on Britain leaving the EU as tensions grow within the Conservative and Labour parties about the likelihood of a beneficial Brexit deal being achieved. FX markets were somewhat subdued but the Dollar is slightly weaker across the board and EURGBP a little higher. The main event of the upcoming week will be Thursday’s ECB meeting. . President Trump also tweeted that the U.S. in “considering, in addition to other options, stopping all trade with any country doing business with North Korea”. The President has also scheduled a meeting with military leaders to discuss the situation. Very little data today with the US markets closed but we do get UK construction PMI.. Good luck..