Morning Update – 13/11/2017 – by Arjun Lakhanpal

November 13, 2017 by

Morning all.. Wall St closed around unchanged on Friday after a mixed session but ended quietly. However we saw continued weakness in the Nikkei which fell 1.3% and kept USDJPY capped, even after a decent rally on Friday in US 10yr yields. Stocks in Tokyo deepened a decline going into the close of the session to pull away further from a 25-year high tested last week, with the Nikkei 225 Stock Average dropping the most in six months. In FX, the Pound took a hit as pressure mounts on U.K. Prime Minister Theresa May after a raft of political scandals and scant progress on Brexit talks. Sterling retreated after a report that as many as 40 Conservative MPs have agreed to sign a letter of no confidence in May, almost enough to trigger a leadership challenge. Meanwhile, the U.K. Labour Party accused May of lacking the support within her Conservative Party to deliver the Brexit transition period she’s proposed. The news kick starts a week that also features a slew of Bank of England members speaking, along with updates on U.K. inflation, the labor market and retail sales. Pessimism over the state of play on U.S. tax cuts helped drag global equities down from this month’s record high late last week. Measures of equity-market volatility have risen, albeit from near record low levels. Fresh political turmoil in Australia that risked undermining confidence, weighed on the Aussie dollar early in the day. The Australian government’s grip on power weakened after another lawmaker quit in the dual-citizenship saga. Not much in the way of data today so a quiet one expected.. Good luck..