Morning Update – 11/05/16 – by Arjun Lakhanpal

Morning all.. Wall St had a good session closing up 1.25% on the day as oil had another strong session. Overnight we have seen energy prices and stocks retreat somewhat with the Nikkei more or less unchanged and HK and Korea lower. The Nikkei slightly soft due to a strengthening JPY with USDJPY falling to a low of 108.57 into the close of Asia on what some suggest was exporter selling. We are told that Exporters’ budget assumptions have been lowered to 105. Recently the JPY had weakened on increassed rhetoric. Japan FinMin Aso recently turned up the rhetoric against rapid, one-sided FX moves and market volatility. Though not a major departure from policy, he specifically mentioned intervention whereas previous admonitions to the market were just for “action” to stem volatile moves. During Asian hours Wednesday, global benchmark Brent was down 0.37 percent at $45.35 a barrel, after settling up 4.3 percent overnight. U.S. crude futures were down 0.45 percent at $44.46 a barrel, after finishing up 2.8 percent in U.S. hours. Iron ore and steel futures in China advanced on Wednesday, with the Shanghai rebar futures for October up 1.18 percent. Iron ore futures for September, traded on the Dalian Commodity Exchange, were up 0.39 percent. Spot iron ore for immediate delivery to China’s Tianjin port was at $54.20 a tonne on Tuesday, down from $55.60 on Monday. We have seen buyers of AUD into the Asian close. This morning we get UK Industrial Production and little else.. Good luck.