United States Producer Prices Unchanged in October

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From Trading Economics: Producer prices for final demand in the United States were unchanged in October from September of 2016, following a 0.3 percent rise in the previous period and below market expectations of a 0.3 percent gain. Services cost fell 0.3 percent, following a 0.1 percent rise in both August and September, mainly due to a 5.7 percent drop in prices for securities brokerage, dealing, investment advice, and related services. In contrast, prices for goods moved up 0.4 percent, the second straight increase, mainly due to a 9.7 percent jump in gasoline cost. Excluding food and energy, prices declined 0.2 percent

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In Asian Equity Markets Japan's Nikkei index rose to a 9-1/2-month high on Wednesday, as a weaker yen underpinned exporters and higher Japanese yields stoked bank stocks. The Nikkei ended up 1.1 percent at 17,862.21, scaling its highest levels since Feb. 1. The broader Topix rose 1.3 percent to 1,421.65, while the JPX-Nikkei Index 400 also added 1.3 percent to 12,777.92. MSCI's broadest index of Asia-Pacific stocks outside Japan rose 0.6 percent, bouncing back from a four-month low touched earlier this week. The Australian index, S&P/ASX 200, gained 0.03 percent, while the Shanghai Composite Index fell 0.11 percent.

In Currency Markets the dollar retreated from an 11-month high against a basket of currencies on Wednesday, taking a breather from a week-long rally driven by a rise in U.S. bond yields after Donald Trump won the presidential election. Against the yen, the dollar eased 0.2 percent to 108.98 yen  after setting a five-month peak of 109.34 on Tuesday. The euro rose 0.2 percent to $1.0747, having edged up from an 11-month low of $1.0709 touched on Monday. Sterling edged up 0.1 percent to $1.2471  after losing 0.3 percent on Tuesday. The Australian dollar last traded at $0.7557, having pulled up from Tuesday's one-month low of $0.7511 on the back of a bounce in commodity prices.

In Commodities Markets  oil futures rose on Wednesday, shrugging off an industry report that showed an unexpected build in U.S. crude stocks, and adding to gains of nearly 6 percent from the previous session.  U.S. benchmark crude was up 14 cents at $45.94 a barrel. Brent futures rose 20 cents to $47.15, after spending most of the Asian session in negative territory. Crude inventories climbed by 3.6 million barrels to 488.8 million barrels in the week ended Nov. 11, the API report showed, compared with analyst expectations for an increase of 1.5 million barrels.  Spot gold was up 0.14 percent at $1,229.36 an ounce. Silver was up 0.4 percent at $17.14 an ounce and platinum rose 0.27 percent to $937.80. Palladium was down 0.3 percent at $703.80.

In US Equity Markets  stocks rose on Tuesday, with the Dow registering its fourth consecutive record high close as tech stocks rebounded from a post-election battering and energy stocks were boosted by a sharp rise in oil prices. The Dow Jones industrial average rose 0.29 percent, to 18,923.06, the S&P 500 gained 0.75 percent, to 2,180.39 and the Nasdaq Composite added 1.1 percent, to 5,275.62. Home Depot fell 2.6 percent after the No. 1 U.S. home improvement chain reported strong third-quarter results but kept its full-year sales forecast, implying a weaker-than-expected fourth quarter. Tech giants Microsoft, Amazon and Alphabet provided the biggest boost to the Nasdaq, and along with Apple Inc, were the top drivers for the S&P 500.

In Bond Markets  Japanese government bond prices weakened across the board on Wednesday, with the benchmark yield hitting an eight-month high, as the market crumbled from the short-end on a lingering impact from a poor five-year auction the previous day. The two-year yield and the five-year yield touched 9-1/2-month highs of minus 0.120 percent and minus 0.075 percent, respectively. The benchmark 10-year JGB yield was up half a basis point at 0.005 percent after touching 0.015 percent, its highest since March.

Source: Institute of Trading and Portfolio Management