Morning Update – 30/06/2017 – by Arjun Lakhanpal

Morning all.. Global equities took a hit as bond yields rose steeply, signalling the potential end to easing policies. The S&P closed down 0.86% and the Nikkei fell 1.09%. Equities fall most in seven weeks as tech rout worsens.. The shift in tone from central banks in Europe and the U.S. continued to drive financial markets, with stocks and bonds selling off and currencies from the euro to the loonie (CAD) making gains versus the dollar. The U.S. technology sector’s woes deepened as renewed selling in the year’s biggest winners sent software and chipmaker shares to the lowest in seven weeks. Investors rotated into banks after the Federal Reserve cleared them to repurchase stocks. USD Treasury note rate topped 2.26 percent, while government debt in Europe sold off faster on hawkish sings from the European Central Bank. The euro hit the highest level in more than a year and sterling rose a seventh day. The pound climbed 0.6 percent to $1.3000, heading for a seventh straight day of gains, the longest winning streak since April 2015. USDJPY fell but held the 100 day moving average at 111.75 before rallying as Nikei climed into the close. The Canadian dollar rose 0.3 percent after jumping 1.2 percent on Wednesday as Bank of Canada Governor Stephen Poloz reiterated he’s considering tighter policy. We have a big day for data today and it started overnight with Japan May Core N’wide CPI: +0.4% y/y in line; core CPI ex-fresh food/energy px 0.0% y/y; Overall N’wide CPI: +0.4% y/y-Japan May Industrial Output (prelim): -3.3% vs -3.2% cons; falls at fastest pace since Mar 2011-Japan May Unemp Rate: +3.1% vs +2.8% cons; Govt: rise in jobless rate due to people quitting to seek better jobs & new people entering job mkt-Japan May Household Spending: -0.1% y/y vs -0.6% cons & +0.7% m/m vs +0.2% cons; 15th consecutive month of annual declines, longest streak of falls on record. China Jun Mfg PMI beat: 51.7 vs 51.0 cons (51.2 prev); quickest pace of expansion in 3m, 11th consecutive month of expansion; production growth and new orders surge-China Jun Non-Mfg PMI: 54.9 vs 54.5 prev.. This morning we get French Consumer spending and PPI data, German unemployment, Norwegian Unemployment, UK GDP and EU CPI data. In the US we get US inflation so a busy day ahead.. Good luck..