Asia

European shares dipped and U.S. equity-index futures (-0.3%) pointed to a lower open as traders questioned the stability of the Italian banking sector ahead of next weekend's referendum as well as the longevity of the Trumpflation rally, pressuring the dollar, sending the USDJPY sliding as low as 111.355 overnight, before rebounding over 112. That was the dollar's biggest fall against its Japanese rival since October 7 and against a basket of top world currencies it was the greenback's worst day since November.

After 16 days in a row without a meaningful decline, Asia trading has opened with USDJPY dumping back from almost 114.00 to 111.50 - the biggest drop since July 29th. The USD Index is down most since Trump's win but for now the moves in equities (Japanese and US) are modest (but down)...

Yen is heavily bid as Asia trading opens

The biggest drop in USDJPY since July...

As the post-Trump surge in the dollar has seemingly stalled...

Japanese equities are getting hit...

This article by David Haggith was first published on The Great Recession Blog: 

Authored by Brahma Chellaney, originally posted at Project Syndicate,

Tensions over water are rising in Asia – and not only because of conflicting maritime claims. While territorial disputes, such as in the South China Sea, attract the most attention – after all, they threaten the safety of sea lanes and freedom of navigation, which affects outside powers as well – the strategic ramifications of competition over transnationally shared freshwater resources are just as ominous.

On Friday, after reading the latest shift in the ever-changing, always fluid OPEC narrative, according to which Saudi Arabia now demands Iranian oil production cuts contrary to the agreement reached at the end of September in Algiers, in which Iran was granted an exemption from the upcoming supply cut negotiation in Vienna on November 30, we were confused:

Wait so the Saudis demand Iran cuts production now after explicitly granting Iran an exemption in Algiers?

— zerohedge (@zerohedge) November 25, 2016