Germany Consumer Climate Declined to 6-Month Low

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From Trading Economics: The GfK Consumer Climate for Germany is set to decline to 9.7 in November 2016 from 10.0 in October and missing market consensus. It was the lowest reading since April, as both income expectations and propensity to buy fell while economic prospects rose for the first time in four months. "This weakening of consumer sentiment in Germany is not caused primarily by the hard facts of domestic trends, such as those relating to employment and income levels. It is more a consequence of an external trade environment that has become increasingly difficult. According to the forecast, global economic growth will remain weak, said GfK.

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In Asian Equity Markets  Japan's Nikkei index edged down on Wednesday morning after U.S. stocks weakened on dismal earnings in the corporate sector while falling oil prices hurt mining stocks. The Nikkei fell 0.3 percent to 17,309.53 in midmorning trade, after rising to a six-month high on the previous day. The broader Topix fell 0.1 percent to 1,376.45 and the JPX-Nikkei Index 400 declined 0.1 percent to 12,340.54. MSCI's broadest index of Asia-Pacific stocks outside Japan slid 0.6 percent,  while South Korea's KOSPI fell 1.3 percent and Australia fell 1.6 percent. China's Shanghai Composite index pulled back 0.2 percent, while Hong Kong's Hang Seng lost 0.6 percent.

In Currency Markets underpinned by expectations U.S. rates will rise by the year-end, the dollar held steady in Asia trading on Wednesday, just below a near nine-month peak struck overnight, while the Australian dollar gained as inflation data doused chances of a rate cut there. The Aussie jumped to $0.7709 from $0.7645 before the data. It was last up 0.5 percent on the day at $0.7684.Against the yen, the dollar stood at 104.24, while the euro was steady at $1.0890. Sterling fell 0.2 percent to $1.2164 after Bank of England Governor Mark Carney cast doubt on expectations for more monetary stimulus in Europe, saying that the BoE would "undoubtedly" take sterling's weakness into account at its rate-setting meeting next week.

In Commodities Markets oil prices fell more than a percent on Wednesday as a report showing a rise in U.S. crude stocks, rising production in Nigeria and squabbling among producers about a planned output cut re-ignited concerns about a global supply glut. Brent crude futures were down 1.20 percent, at $50.18 a barrel. Prices hit $50.17 earlier in the session, the lowest in about three weeks. U.S. crude was at $49.27 per barrel, down 1.38 percent, from its settlement on Tuesday. Spot gold was up about 0.1 percent at $1,275.04 an ounce. Silver climbed 0.22 percent to $17.82 an ounce. Platinum fell 0.23 percent to $961.00 an ounce, while palladium edged up 0.2 percent to $634.20.

In US Equity Markets  stocks fell from two-week highs on Tuesday as results and forecasts from companies in sectors including housing and consumer products failed to live up to expectations. The S&P 500 lost 0.38 percent, to 2,143.16 and the Nasdaq Composite fell 0.5 percent, to 5,283.40. Apple posted after the bell better-than-expected iPhone sales that however continued a declining trend and shares fell about 2 percent. Caterpillar lost 1.8 percent after a downbeat forecast, while General Motors fell 4.2 percent amid fears regarding future profits. Procter & Gamble rose 3.4 percent after reporting a better-than-expected quarterly profit, while sportswear maker Under Armour fell 13.2 percent after it reported its slowest quarterly sales growth in six years.

In Bond Markets  benchmark Japanese government bonds inched lower on Wednesday while longer maturities edged up, but the moves were slight ahead of next week's Bank of Japan policy meeting.  The benchmark 10-year JGB yield added half a basis point (bp) to minus 0.065 percent, while December 10-year futures were down 0.03 point at 151.86 in afternoon trading. In the superlong zone prices were slightly higher. The 20-year JGB yield shed 0.5 bp to 0.360 percent and the 30-year yield also inched 0.5 bp lower to 0.480 percent.

Source: Institute of Trading and Portfolio Management