Morning Update – 12/01/2017 – by Arjun Lakhanpal

Morning all.. Wall St had a decent close after the Trump press conference and finished up 0.28% but there were some that were disappointed with the style and lack of substance and they sold the dollar. In Asia stocks were weaker on fears of more protectionism from the US. The Nikkei finished down 1.2%..USDJPY drove some of this weakness as it failed to remain above the pivot point at 115.00 and hit a low of 114.18 at one point. The dollar looks heavy still and some techs suggest further losses..A break of 114.00 could open a shot at 111.00. The press conference was weak and poorly delivered according to many we speak to. Very little on policy with vague mention of how the Mexico Wall will be funded; concluded with nothing substantive in terms of fiscal, regulatory, tax reform.. Sounded protectionist and insular though and that is the concern. Nikkei: BoJ may find it harder to guide interest rates once Donald Trump takes office given the potential for big bond yield swings in both Japan and US; concern also remains over damage to emerging markets from strong dollar affecting the global economy. In FX the dollar fell but GBP and MXN were still under-performers.. Oil surged in NY but is holding those gains; unchanged through Asia. US yields are lower again with the 10yr at 2.32%. On the G10 data side to note, Japan’s current-account surplus for November was 1.42 trillion yen ($12.3 billion), underpinned by a drop in the value of imports compared to the previous year. The estimate was for 1.46 trillion yen. This morning we get French and Swedish CPI data and EU IP ..Good luck..