Morning Update – 23/11/2016 – by Arjun Lakhanpal

Morning all.. A quiet session on Wall St but one which saw another record high with the S&P up 0.22% and the Dow closing above 19k for the first time. Asia was also very quiet as we wait for the Fed minutes tonight and the big US holiday on Thursday with the Nikkei up 0.3%. FX markets were extremely quiet overnight but AUD has rallied as industrial metals rallied strongly with Iron Ore up an impressive 8%. There has been buying of AUD and AUD crosses like AUD/Kiwi and selling of EURAUD. RBA Kent: Australian GDP growth close to potential over next few years; unemployment rate likely to edge slightly lower; inflation rate to stay low in short term then move back to normal levels as wages rise; believes that 80% of head-wind from mining investment cliff is behind us. USDJPY and the others all rather quiet as traders wait to see what the Fed discussed. It looks like being a quiet session barring headlines. But it has to be said the dollar is still holding solid gains generally and US yields remain above 2.3%. Oil this morning is unchanged and the US 10yr yield sits at 2.31%. Little movement in Cable or EUR overnight as many waiting for the UK budget later today. Officials suggest few surprises though. EU Lead Brexit Negotiator Verhofstadt: Britain should expect to be shut out of cooperation in areas it values after Brexit; Brexit means Brexit, not cherry picking or special relationships. This morning we get PMI data from France, Germany and the EU. Good luck..