Morning Update – 27/01/16 – by Arjun Lakhanpal

Morning all… A strong session on Wall St saw S&P close up 1.4% and some were suggesting month end re-weighting may see more demand into the end of the week for stocks. Asia had a mixed session with Nikkei closing up 2.7% but China is lower at present and at one point was 2% lower. Oil fell from the highs as Oil inventories were high again and Asia saw further falls with WTI back at 30.75. After hours Apple shares fell as forecasts suggest iphone sales may be about to stall and Dow futures are down 47 points. FX markets very quiet with most stuck in a tight range through the session. USDCAD had a huge move yesterday as oil fell but USDJPY and the majors were very quiet considering the moves in equities. Possibly the fears over what the FOMC statement tonight may hamper risk taking. As London walks in we are seeing EUR break higher above yesterday’s highs. Gold had a good day yesterday and is bid again or holding gains trading at $1119.00.. Data in China was weak again with China Dec Industrial Profits -4.7% y/y; high costs, tight liquidity & slow demand all impacted corporate operations in 2015.. Data today is likely to take a back seat with the Fed statement later but this morning we get Swedish manufacturing and Consumer confidence and Italian consumer confidence. Many expect a quiet FX session due to the Fed. Good luck..