Morning Update – 25/11/2016 – by Arjun Lakhanpal

Morning all.. Wall St was closed for thanksgiving yesterday but we saw solid gains in Asia with the Nikkei up 0.26% in a quiet session even with US bonds selling off (higher yields) as they reopened after the holiday break. US 10yr at around 2.375% after closing Wednesday around 2.35%. USDJPY held gains very well in a quiet market and seeing any dip attracting demand. Japan’s consumer prices fell for an eighth straight month –the longest streak of declines since 2009-2011, underlining how distant the nation is from achieving its 2 percent inflation target.. Consumer prices excluding fresh food, the Bank of Japan’s primary gauge of inflation, dropped 0.4 percent in October from a year earlier (forecast-0.4 percent.) Overall consumer prices rose 0.1 percent (forecast unchanged), with a spike in fresh food prices compensating for continued falls in energy costs. It suggests the BoJ may have to do more stumulus. New Zealand posted a narrower trade deficit as exports topped consensus and imports came in as expected; Exports of dairy were up a robust 13% for the first time in months amid recovery in prices. Base metals traded strong overnight, with iron ore up a further 4% overnight, following on yesterday’s limit up session. Gold traded at a nine-month low, while oil pared back recent gains as OPEC made its final push to reach a supply deal and the increasing influence of non-OPEC member Russia becomes prevalent. This morning we get Spanish PPI and UK GDP…Good luck..