Morning Update – 16/01/2017 – by Arjun Lakhanpal

January 16, 2017 by

Morning all.. US Holiday today and markets there closed..Wall St had a mixed session after some rather soft Retail Sales data with the Dow finishing unchanged and the S&P up 0.18% after earlier losses. The biggest surprise was the rise in US yields after the poor data.. Over the weekend we had more concerns over the UK and Brexit and this has turned the market rather risk averse sending the Nikkei lower by 1%. GBP and USDJPY lower overnight in choppy trading and GBP weakness expected into PM May’s speech on Tuesday. PM May willingness to give up single market membership will be made clear on Tuesday speech; red lines will be end of free movement from EU and clearance to hold bilateral trade talks with other countries. Sunday Telegraph: PM May expected to side with Eurosceptics say that Britain must regain full control of borders even if it means ending single market membership and that Britain must no longer be bound by ECJ rulings; must be prepared to leave customs union to secure free trade deals across the world. GBP traded as low as 1.1986 after closing Friday at 1.2180. China Daily: if Trump takes recent rhetoric into office, a period of “fierce damaging interactions will be unavoidable”; Beijing will have no choice but “to take off the gloves”.. There is no data of note today in Europe or the US which is closed for a holiday. Good luck.