Morning Update – 30/05/2017 – by Arjun Lakhanpal

Wall St closed very quietly on Friday and was closed yesterday but Asian stocks have moved lower last night before rallying into the close.. The Nikkei closed around unchanged but concerns over N. Korea firing another test missile is keeping many nervous. This saw USDJPY fall and risk averse currencies also fell with AUDJPY lower. EUR fell sharply after Draghi spoke yesterday suggesting Euro area still needs expansive monetary stimulus to restore stable inflation even as the economy accelerates; “domestic cost pressures, notably from wages, are still insufficient to support a durable & self-sustaining convergence of inflation towards M/T objective”.. ECB Weidmann: expansionary ECB policy appropriate in principle in light of subdued price pressures; but given economic recovery and inflation f/c of 2% in 2019, exit discussion is legitimate given price outlook. This fall in EUR saw EURJPY fall steeply. GBP was a tad lower but up against the EUR as PM May and Corbyn battled it out on TV last night. UK PM May(BBC Q&A): We’re prepared to leave EU without a deal; Labour’s Corbyn said he’d get a Brexit deal if elected. Latest poll UK Election Times/Survation Poll: Conservatives 43%(unch); Labour 37 %(+3).. Data last night saw Japan Apr overall household spending: -1.4% y/y vs -0.9% consensus and Moody’s: New Zealand will be among the fastest growing AAA-rated economies in coming years. This morning we get French Consumer confidence and GDP, regional and national CPI across Germany Spanish CPI, Swedish GDP and Retail sales. We also get EU Consumer confidence so a busy morning.. Good luck..