Morning Update – 21/06/2017 – by Arjun Lakhanpal

Morning all.. A quiet session on Wall St but a rather weak one as stocks drifted away from record highs with S&P down 0.67% and Nasdaq down 0.82%. The Nikkei followed, aided and abetted by a weaker USDJPY and closed down 0.5% whilst Chinese stocks nudged higher as China was accepted into the MSCI after some wait. Oil had a very bad day again yesterday and was seen as part of the cause for weaker stocks but didn’t really move over night. Australia’s benchmark stocks index led losses in the region, with the country’s energy shares falling more than 2 percent. The yen strengthened on haven demand but FX markets hardly moved in most cases. The swoon in oil dragged down energy shares amid concern that unceasing production from U.S. shale fields is overwhelming OPEC efforts to ease a global supply glut. Libya, exempt from the OPEC-led output cuts, is pumping the most in four years while oil stored on tankers reached a 2017 high this month. The weakness in crude and other commodities dents arguments from American central bankers that weak inflation rates will be transitory, even as the economy shows few signs of distress. The British pound was little changed at $1.2631, after Tuesday’s 0.8 percent drop. Bank of England Governor Mark Carney said he is still worried about the impact of Brexit on the economy and now was not the time for a hike. All in all a very quiet Asian session.. This morning we get Swdish Consumer confidence data and UK Government borrowing numbers so a quiet one expected this morning.. Good luck..