Morning Update – 28/06/2017 – by Arjun Lakhanpal

Morning all.. Wall St closed down across the board with the S&P lower by 0.8% and the NASDAQ lower by 1.6% after global bond yields rose on the back of a more hawkish ECB chief Draghi. The Nikkei fell in Asia and closed down 0.5% but the fall was tempered by a strong rally in the US by USDJPY.. Again in Asia it was the tech stocks that got hit and this popular trade looks vulnerable to a decent correction some suggest. A sell-off in technology stocks extended into the Asian trading session, while bank shares rallied with government bond yields on the prospect of higher interest rates. The dollar held on to losses as Janet Yellen signaled the U.S. economy can withstand higher interest rates and said asset valuations were rich. The yuan surged both onshore and overseas for a second day amid speculation of central bank intervention. Oil resumed its decline on signs of a supply glut but rallied into the Asian close.. Central banks remain the key drivers for markets this week. Draghi said he sees room for paring back stimulus, while Yellen joined her deputy saying some asset valuations are frothy. Those comments come ahead of more appearances from policy makers at the conference in Portugal that concludes today. The International Monetary Fund cut its outlook for the U.S. economy, removing assumptions of President Donald Trump’s plans to cut taxes and boost infrastructure spending. Other risks to the markets include oil’s slide into a bear market and the continuing sell-off of technology stocks, while a cyber-attack that hit port operators from New York to Rotterdam also spooked traders. Trump is struggling to get his Obamacare repeal through.. The Canadian dollar jumped 0.4 percent, adding to a similar gain on Tuesday. Bank of Canada Governor Stephen Poloz said in a CNBC interview that interest rate cuts “have done their job” and that levels are now “extraordinarily low.” This morning we get a look at Spanish retail sales and Italian CPI. We also have the ECB’s forum on-going and comments from Carney, Kuroda and Draghi again. Good luck