Morning Update – 06/07/2017 – by Arjun Lakhanpal

Morning all.. US stocks didn’t quite know what to make of the FOMC minutes and ended the session just marginally firmer. FOMC Minutes (June 13-14 meeting):-Most policymakers: saw recent inflation softness as transitory and having little bearing on inflation trend. Several policymakers: see recent rise in import prices as consistent with inflation rising in medium term; were concerned recent inflation softness might persist due to limited pass through from resource utilization; want to announce b/s reduction within a couple of months, others want to wait till later in 2017; several saw portfolio runoff as a cause for a less-steep path of rate hikes; global economic growth limiting downside risks to US; several viewed GDP/Unemployment risks as balanced and inflation risks as ‘roughly balanced’. Asian stocks seemed more concerned over the fall in oil and the Nikkei fell 0.5%. USJPY is slightly lower on the basis of that.. GBP is holding gains even as TheCityUK (financial lobby group): British finance industry facing ‘tipping point’ over Brexit; Britain will lose status as Europe’s top financial centre unless it keeps borders open to specialist staff, improve infrastructure and expand links with emerging economies; initial shifting of jobs to Europe may accelerate as property leases being to expire or when cost of capital becomes uneconomical. AUD was quiet but Australia Trade Balance above expected: A$2.47Bn vs A$1Bn consensus. N. Korea still dominating Asian headlines.. US Ambassador to UN: North Korea’s missile test was reckless, irresponsible, made world a more dangerous place; US prepared to use the full range of capabilities to deter North Korea, including military force if we must; US will propose new sanctions on North Korea in the coming days; urges China to do more to rein in N. Korea. Very little data this morning… Good luck…