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Morning Shot: Coffee And Sugar Dip, Strong JPY Weighs On Markets

Published 22/06/2017, 08:35
USD/JPY
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NZD/USD
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NDX
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XAU/USD
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XAG/USD
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US500
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JP225
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MSFT
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ABDN
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DGE
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CNE
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GC
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KC
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SI
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CL
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ADNl
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NAPS
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HRN
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NSMH0
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Markets

US markets closed lower yesterday with the exception of the tech heavy Nasdaq which closed higher by 0.74%. Asian markets were all positive apart from the Nikkei 225 weighed by a strong JPY.

Commodities

In commodities markets, sugar took a big drop yesterday breaking through the support level of $13.30, this could be welcome news to food and beverage producers who's margins will increase. Similar price action was noted in coffee futures but moves were not as dramatic, according to some analysts the drop is a attributed to a crack down in smuggling in China.

Meanwhile, gold is retracing some of its losses and has managed to break through the $1250 level and silver has followed suit. After breaking below $43 spot WTI is still languishing near lows and the next support in sight resides at the March '16 high of around $41.80.

So with the weakness seen in commodities yesterday, commodities currencies struggled overnight but the main story was the RBNZ who left rates unchanged and remain accommodative. NZD/USD whipsawed around but has settled at around 0.7250.

Morning Stories

Diageo (LON:DGE) Plc has agreed to acquire George Clooney's high-end tequila brand Casamigos in a deal valuing it at up to $1 billion, as the company seeks to boost its presence in a high-growth market.


Phoenix Asset Management on Wednesday it would become the majority shareholder in Hornby PLC (LON:HRN) and offered to acquire the rest of the company, less than three months after thwarting efforts to oust the British toy maker's chairman.


Cairn Energy's (LON:CNE) 9.8 percent stake in Cairn India, may be put up on the markets for sale as part of tax recovery proceedings started late last week, India's Business Standard newspaper reported.

Iran's Zagros Airlines commits to buying 28 Airbus aircrafts

UK competition watchdog clears Standard Life (LON:SL)-Aberdeen (LON:ADN) deal

EVR Holdings (LON:EVRH) is pleased to announce that its subsidiary MelodyVR has entered into a global partnership and Windows Mixed Reality App Collaboration Agreement with Microsoft Corporation (NASDAQ:MSFT)

Tlou Energy Limited announced that Hugh Swire has been appointed to the Board as a Non-Executive Director with immediate effect

What to look out for

Fed's Powell speaks and Canadian retail sales.

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