Morning Update – 31/10/16 – by Arjun Lakhanpal
October 31, 2016Morning all.. Wall St closed down 0.3% after concerns rose over the email investigation into Clinton and over the weekend her lead in the polls has dropped. In one poll where she had a 12 point lead, it now stands at at 1 point lead. Asia was very quiet as month-end dominates and the Nikkei closed more or less unchanged. USDJPY and risk assets fell on Friday but are climbing again through the Asian session. USDJPY bouncing from 104.50 to 104.94 at one point. Japan September Industrial Production (prelim) missed; coming in at 0.0% m/m vs 0.9% cons. Also Japan Retail Sales were a slight miss; 0.0% m/m vs 0.2% cons.. We are approaching the BoJ meeting and opinions are split on whether they will announce further easing or not tomorrow. Oil was down 0.65% as OPEC / Non-OPEC meetings on Friday & Saturday failed to finalise plans on how to cut production levels. Times (Sat) sources: BoE’s Carney will not stay at the BoE beyond 2018; he will likely return to Canada as his family’s feelings have become a concern; he may announce his decision as soon as this Thursday; suggestions he could leave before 2018 were rejected. Month-end distortions possible today and we get a look at UK Net lending and Mortgage approvals, EU CPI data and Italian CPI and PPI data.. Good luck.
