Morning Update – 27/10/15 – 08:49:54

Morning all.. Wall St faded and closed slightly lower and set the theme for the Asian session where the Nikkei fell 0.9% and HK is down just marginally but SHCOMP down over 2%. Japan’s producer price index for services grew 0.6%yoy in September, in line with median estimates. This was below the upwardly revised reading of 0.8% in August but USDJPY is showing signs of nervousness in front of this weeks BoJ meeting after comments from Abe’s advisers suggesting more easing not yet needed yesterday. China’s industrial profits fell 0.1%yoy to CNY536bn in September. This was an improvement from the 8.8%yoy decline to CNY448bn observed in August but there are concerns as the hugely important Plenum starts this week to set out growth policies for the next 5 years. This may be weighing on risk sentiment. Kiwi was lower after New Zealand’s trade deficit widened to NZ$1222mn in September, worse than the market expected shortfall of NZ$825mn and revised deficit of NZ$1079mn in August. September’s exports dropped to NZ$3.69bn compared with revised figures of NZ$3.71bn in August. Meanwhile, imports climbed to NZ$4.91bn in September, up from a revised NZ$4.79bn in the previous month. Oil has fallen in both NY and Asia overnight and is weighing on risk sentiment and stocks. Crude oil prices in Asia were being further pressured by expectation of a U.S. crude inventories build-up last week and an even weaker performance at the product markets. This morning we get Swedish manufacturing and consumer confidence and PPI data, with the EU M3 money supply and UK GDP data dominating the morning. Good luck.