Morning Update – 08/12/2016 – by Arjun Lakhanpal

Morning all.. Wall St took off as money moved into the market in droves and made new record highs with the S&P up 1.32% and the theme continued into Asia where the Nikkei closed up 1.45%. China data the key to highlight out of the Asia region. November’s trade balance showed a smaller than expected surplus in both USD and CNY terms, but export and import components topped expectations. Overseas shipments increased 0.1% from a year earlier in November, compared with Bloomberg estimates projecting a 5% decline. Imports rose 6.7%, the most in two years, versus a projected 1.9% decline. USD weaker across the board overnight with NZD the standout outperformer. NZD/USD rose to a 4-week high as New Zealand Treasury half-year economic and fiscal update (HYEFU) raised FY16/17 and FY17/18 GDP targets while cutting jobless rate forecast. Alongside, Fonterra global dairy trade auction showed the fourth consecutive increase, although slowing compared to prior. NZ’s Antipodean partner in AUD only traded marginally higher after Aussie trade deficit released wider than expected, but smaller than in recent months. Export growth slowed to 1% from 2% and imports rose 2% after falling 1% prior. Also to note, Moody’s lowered Italy’s rating outlook to Negative from Stable after Sunday’s NO referendum vote, citing concerns with slow progress on economic reform and risk of postponement in addressing debt burden. USDJPY fell to a low of 113.13 but bounced after weak Japanese GDP revision. EUR remains bid on a weaker USD but the ECB meeting looms large today. Oil was unchanged and US yields remained under pressure with 10yrr at 2.345%.. This morning is all about the ECB meeting and press conference. Good luck..