Morning Update – 13/10/16 – by Arjun Lakhanpal

Morning all. Wall St closed marginally higher after we got little new from the FOMC minutes and that was to be expected as we had a press conference after the last meeting when most issues were covered but the committee is moving closer to agreeing a hike it seems. A reasonable argument for hiking in Sept or waiting for more data; generally agreed the case for a hike has strengthened; decision to hold rates was a close call; cautious approach to hikes could help labour market heal; many saw slack in labour mkt; many noted few inflation pressures, progress on inflation is slow; a voter expressed worries over referencing postponing a hike for time being. Asia stocks were pulled lower by poor China data and lower oil prices. Nikkei was down 0.55%. Poor China data with imports and exports disappointing. WTI down 0.75% and below $50.0 now. USDJPY gave up early gains having broken significant resistance as Reuters sources suggested the BoJ will lower it’s inflation forecast for FY 2016 & FY 2017 at its Nov 1st meeting, but likely only by a small amount; many members see little need for further easing unless there is a sharp move in the Yen. USDJPY went from a recent high of 104.64 down to 103.56.  There is no data this morning at all and minor data in the US. Good luck..