Germany Inflation Rate at 2-Year High

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From Trading Economics: Consumer prices in Germany rose 0.8 percent year-on-year in October of 2016, compared to a 0.7 percent increase in September and matching preliminary estimates. It was the highest inflation rate since October 2014, as cost of services rose further while energy prices fell at a slower pace. On a monthly basis, price of consumer went up 0.2 percent, after gaining 0.1 percent in the prior month. It was the highest figure in three months and in line with consensus. The harmonized index of consumer prices (HICP) rose 0.7 percent from a year earlier, compared to a 0.5 percent increase in September. On a month-on-month basis, the index was rose 0.2 percent, compared to a flat reading in the preceding month and in line with expectations.

Market Snap

Market Opening Wrap

In Asian Equity Markets Japan's Nikkei stood firmer on Friday, not far a nine-month high, as investors took profit after markets rose on hopes that President-elect Donald Trump's policies could boost growth. The Nikkei gained 0.2 percent to 17,374.79, after rising as much as 17,621.73 earlier, the highest level since Feb. 2. The broader Topix added 0.1 percent to 1,378.28 and the JPX-Nikkei Index 400 advanced 0.3 percent to 12,383.44. MSCI's broadest index of Asia-Pacific stocks outside Japan fell 1.4 percent. Emerging markets bore the brunt of selling, with MSCI emerging market index falling 1.5 percent to its lowest level since July, with Indonesia and Malaysia hit the hardest in Asia.

In Currency Markets the dollar hovered near a 3-1/2-month high versus the yen on Friday, after making big gains overnight as the markets prepared for a Donald Trump presidency that could stimulate the U.S. economy fiscally and lift interest rates. The U.S. currency fell slightly to 106.610 yen after rising to 106.950 yen overnight, its highest since July 21. The euro treaded water at $1.0902 after losing 1 percent overnight. The U.S. currency was little changed against the safe-haven Swiss franc at 0.9867 franc. Sterling stood its ground against the dollar, trading just below a one-month high of $1.2585 touched on Thursday. The Australian dollar was down 0.2 percent at $0.7598, while kiwi fell 0.2 percent to $0.7198

In Commodities Markets oil prices fell in early trading on Friday, as the market refocused on a persistent fuel supply overhang that is not expected to abate unless OPEC and other producers make a significant cut to their output. International Brent crude oil futures were trading at $45.74 per barrel, down 0.2 percent, from their last close. U.S. West Texas Intermediate crude oil futures were trading at $44.51 per barrel, down 0.3 percent, from their last settlement, with a stronger dollar also weighing on prices. Spot gold was up 0.2 percent at $1,262.20 an ounce. Silver was down 0.2 percent at $18.54 an ounce but was on track for a fourth weekly rise. Platinum fell 0.5 percent to $966.98 an ounce and palladium was up 0.7 percent at $693.20 an ounce.

In US Equity Markets  U.S. banking sector stocks on Thursday rose to levels not seen since the midst of the 2008 financial crisis, pushing the Dow to an all-time high, while technology stocks sank as Wall Street rearranged its bets to benefit from Donald Trump's presidency. The Dow Jones industrial average jumped 1.17 percent to end at 18,807.88. The S&P 500 rose 0.2 percent to 2,167.48 while the Nasdaq Composite fell 0.81 percent to 5,208.80. Shares of Wells Fargo & Co jumped 7.58 percent, Bank of America rose 4.40 percent and JPMorgan Chase rallied 4.64 percent to a record high. Apple fell 2.79 percent while Amazon.com fell 3.82 percent and the S&P 500 technology index was down 1.59 percent.

Source: Institute of Trading and Portfolio Management