Morning Update – 27/10/2017 – by Arjun Lakhanpal

October 27, 2017 by

Morning all Wall St reversed the losses of the previous session and the S&P closed up 0.13% and the Dow up 0.3%. In Asia we saw another solid close in Nikkei; closing up an impressive 1.15% as USDJPY retook 114.00. The dollar climbed to a three-month high as earnings and congressional action on tax reform boosted confidence in the growth outlook. Australian assets took a hit after the government lost its majority. EUR remained very weak after the ECB meeting sell-off and extended down to 1.1624. USDCHF is flirting with parity. In Japan, technology shares rallied following stellar profit at Inc. and Alphabet Inc. that buoyed futures on the Nasdaq 100 Stock Index. Shares also advanced in Hong Kong and Seoul with U.S. equity-index futures. Results from Twitter Inc. and Ford Motor Co. topped estimates, showing strength in the American economy ahead of the first reading on gross domestic product for the third quarter later today. The Aussie dollar plunged to the lowest since July and stocks declined after the nation’s high court ruled Deputy Prime Minister Barnaby Joyce is ineligible to remain in parliament as he was also a citizen of New Zealand when elected, violating constitutional laws. That means Prime Minister Malcolm Turnbull’s Liberal-National coalition government loses one-seat majority in the lower house of parliament. Japan’s inflation remained unchanged in September, underscoring the challenge facing the Bank of Japan ahead of a policy meeting next week. This morning we get French Consumer confidence data, Swedish consumer confidence and Spanish Retail sales so a quiet data docket in Europe. Good luck..