Morning Update – 30/01/2017 – by Arjun Lakhanpal
January 30, 2017Morning all.. Wall St had a quiet session and drifted off into the close to end down marginally. Asia, dominated by the start of Golden Week saw little action but again the Nikkei drifted lower finishing the session down 0.5%. Japan Retail Sales disappointed: +0.6% vs +1.3%.. The dollar also drifted lower as concerns over the full impact of Trump immigration policy on business rose. The dollar was weaker across the board but again in a quiet and low volume market. This possibly due to a very busy week for major central banks and a lot of tier 1 data from the US. ECB’s Knot: rising inflation, higher oil px and impact of Trump’s economic policy mean there is no reason to continue QE; this does not mean you can stop it right away.. UK PM May: Britain does not agree with Trump’s approach but immigration policy in US is a matter for US Govt, just like British immigration policy should be set by British Govt; will not be taking Trump’s approach but studying US executive order for legal implications for UK nationals.. May under some pressure after her meeting with Trump. PM May (after meeting with Turkish PM): announce defence industry collaboration worth >£100m to develop Turkish jet fighters; viewed as gateway deal that may open multi-billion pound contracts over project’s lifetime; deal shows Britain is open for business as a trading nation. This morning we get Regional and national PMI data from Germany, Spanish GDP and EU confidence data.. Good luck
