Morning Update – 13/01/2017 – by Arjun Lakhanpal
January 13, 2017Morning all.. Wall St started off on the back foot but managed a rally into the close which took some pressure of both bond markets and the dollar. S&P finally closing down just 0.21% showing remarkable resilience and the better sentiment continued into Asia where we saw the Nikkei close up 0.8%. This was helped by the bounce in US yields and USDJPY. US 10yr bounced above 2.37% and USDJPY traded above 115.00 again before falling in the last hour after Japan Eco Min Ishihara: Govt is monitoring closely for rapid rises in JPY.. GBP remains weak after PM May said she will be making a key speech on Tuesday on Brexit. Fed’s Yellen (no comments on current mon pol/rates): US economy doing well, no serious obstacles in the short-term; labour market generally strong, wages picking up pace; 2008 outcome would have been far worse without Fed emergency lending; monetary policy capability is dwarfed by other factors such as workforce productivity. German Fin Min (~16:20gmt, Sueddeutsche interview to be published on Friday): would be right for ECB to start exiting ultra-expansive monetary policy this year but any reversal would be a tough challenge; both possible and necessary for next German Govt to lower taxes after Sept election.. EUR was quiet.. This morning we have Spanish CPI and thats it really..The main event is US Retail Sales later today.. Good luck..
