Morning Update – 07/11/15 – 07:54:02

November 9, 2015 by Arjun Lakhanpal

Morning all.. Considering the market view that the Fed may now raise rates after the strong data Friday, stocks held up very well in the US as they closed around unchanged on the day.. Asia had a better session even after poor data from China.. The Nikkei closed up nearly 2%! The Fed also won’t be able to ignore international developments and China has again added some intrigue to the debate about the global economy. Over the weekend both exports and imports declined by a larger margin than expected and down on last month. Exports declined by -6.9% yoy (-3.6% in RMB terms) versus -3.2% expected. Imports went down more sharply by -18.8% (-16% in RMB terms) versus -15.2% expected. The trade surplus was only slightly smaller at $61.6bn against $62bn expected. So activity globally seems to have still been weak in October. The data has caused little concern in Chinese equity markets this morning where the Shanghai Comp is currently +1.55% and CSI 300 is +1.36%. This and the Nikkei has seen USDJPY well supported and a high of 123.48 has been posted. EUR has been quiet in Asia and AUD, after aa weak start on the back of the China data has rebounded. Crude is up marginally and gold little changed. US 10yr yield sits at 2.33%. This morning we get French business sentiment, and Swedish Household consumption and that’s it for the morning.. Good luck.