Morning Update – 13/06/2017 – by Arjun Lakhanpal

June 13, 2017 by

Morning all.. Wall St was lower and tech stocks down but a late rally helped calm nerves somewhat. The S&P closed down 0.1% and NASDAQ down 0.5% after a weak start. Markets were extremely quiet in Asia as many await the Fed decision tomorrow with the Nikkei basically unchanged ont he day and a bounce in HK of 0.34%. FX ranges were also limited to 30 pips in many cases and oil nudged higher by 0.4%. US 10yr yields remain around 2.21%. GBP is holding after a fall yesterday as political uncertainty remains. UK Fin Min: acknowledges political uncertainty in UK; hopes investors will bide their time for clarity on how Govt would work.. Telegraph sources: senior Ministers are having secret talks with Labour MPs to secure cross party support for soft Brexit; some senior members of PM’s team are discussing forcing her to make concessions on immigration, customs union & single market. The CAD strengthened as BoC’s Wilkins: will assess whether all of the monetary policy in place is still needed as economic growth continues; few sectors can expand enough to absorb excess capacity, broad based growth is desired but not our objective, we target the 2% inflation rate; economic slack still translating into below-target inflation.. In Japan; BoJ’s Amamiya: will continue necessary monetary policy steps to achieve stable prices, with an eye on how they affect BoJ financial health; recent slowdown in JGB purchases largely due to fact that UST yields have stabilized and are exerting less upward pressure on Japanese L-T rates; hard to say how future exit from easy policy could impact BoJ’s financial health, depends on pace of S-T hikes and what the yield curve would look like at the time; BoJ already has sufficient steps in place to guard against fluctuations in future profits.. Turning to this morning we have Spanish CPI, UK CPI and PPI data and German ZEW data.. Good luck.