Morning Update – 22/06/2017 – by Arjun Lakhanpal

Morning all.. Wall St closed lower but rallied off the lows into the close but was a mixed session with the Dow down 0.27%, the S&P unchanged but the NASDAQ up 0.75%.. There seems to be some rotation out of energy and mining stock and into Bio-tech and Tech stocks. The Oil fall pressed heavily on energy stocks and the oil price failed to bounce in Asia. The demand for safe haven assets saw USDJPY fall which pressured the Nikkei which closed unchanged having been higher. Oil is now down 24% since the start of the year and now considered in a bear market. West Texas Intermediate crude fluctuated amid speculation that rising U.S. output will blunt OPEC-led efforts to trim a global glut. Australian shares bounced back after the biggest drop since November, while Chinese stocks climbed for a second day after MSCI Inc.’s decision to include mainland shares in its indexes. The kiwi rose after the nation’s central bank maintained its neutral policy stance. The RBNZ said lower NZ$ would help rebalance growth outlook towards tradable sector; domestic growth outlook remains positive supported by accommodative monetary stance; recent changes introduced in 2017 Budget should support growth outlook; Q1 GDP was lower than expected. In Japan; BoJ’s Dep Gov Iwata said inflation still lacking momentum, risks to price outlook skewed toward downside; must patiently continue powerful monetary easing to push down real interest rates; absolutely do not need to raise rates now; expects inflation to gradually accelerate toward 2% target; need to anchor inflation at 2% to secure room for rate cuts in case of emergency; calls to abandon 2% inflation target do not take into account lessons learned during Lehman crisis.. This morning we get French Business confidence, the Norwegian central bank decision on rates and EU Consumer confidence. Good luck…