Morning Update – 23/05/16 – by Arjun Lakhanpal
May 23, 2016Morning all .. Wall St closed quietly but in the green as stocks globally are still unsure about a potential Fed hike. Asia saw the Nikkei fall 0.5% but China slightly firmer. Stocks appear to be on hold.. G7 Summary from Japan (NB not an official communique): global uncertainties have risen; a Brexit could complicate the outlook; important to implement flexible fiscal policies & continue with structural reforms; reaffirmed existing FX agreements, including not to target FX rates, to refrain from competitive devaluations & that disorderly moves can have a negative impact. FX has had a choppy session with USDJPY falling after the G7 comments but bounced on comments from Fed’s Rosengren in the FT. He said he is getting ready to back tighter US monetary policy; most conditions laid out in FOMC minutes seem to be on the verge of being broadly met; making progress on inflation; Fed set a relatively low threshold re: improvement in growth. AUD is a little soft as Iron ore falls steeply again. This morning we get PMI data for France and Germany.. Good luck..
