Morning Update – 23/10/2017 – by Arjun Lakhanpal

October 23, 2017 by

Morning all.. Wall St Climbed again Friday with the S&P up 0.5% and the Dow up 0.7% in a session that saw US yields and the dollar also rally. In Japan, after the confirmation that Abe had the two thirds majority needed, we saw the Nikkei surge and close up over 1.1% and looks to be on a strong run, attracting buying from around the world. Problems persist in Spain as A155 is invoked. PM Rajoy: says he invoked Art.155 to “restore the rule of law, coexistence and the economic recovery and to ensure that elections could be held in normal circumstances”. -[Sat] Catalan Leader Puigdemont: people of Catalonia cannot accept measures decided by Spanish Govt; Spanish govt steps on Catalonia worst attacks since Franco dictatorship; requests Catalan parliament meet to debate Spain govt measures. US yields held gains made Friday and USDJPY broke briefly above 114.00 on the Abe result before selling off again. In the UK, UK Trade Min Fox: Macron is completely wrong to think UK are bluffing about a ‘no deal’; doesn’t think its possible to agree Brexit transition deal that doesn’t allow Britain to scope out trade deals with other nations; if we have no deal scenario and trade on WTO terms it’s not a nightmare scenario; we have to give EU more assurances that we are moving right direction to open trade talks in Dec; can only have final number for financial settlement when final Brexit deal has been reached. IHS Markit: UK Oct Household Finance Index 43.8 vs 42.8 in Sept; highest since June; 40% of households exp BOE hike in 3mo, 63% in 6mo vs Sept survey: 12% in 3months. Politics continues to dominate the news over the weekend with a referendum for greater autonomy in Lombardy and Veneto, Italy and the outcomes of Brexit and Catalonia independence referendum still unclear. No data of note this morning.. Good luck.