Morning Update – 07/09/2017 – by Arjun Lakhanpal

Morning all.. Wall St had a quiet but positive session with the S&P closing up 0.3% and US yields hardly moved all day after a steep fall the day before. Rising stocks calmed nerves and the lack of new news helped. In Asia last night the Nikkei closed up 0.18% in an extremely quiet session that saw little movement in currencies with EUR edging slightly higher ahead of the ECB meeting today. USDCAD stabilised to $1.2226 after CAD reached 2 year highs following the BoC decision to raise interest rates by 25bps following strong economic data. JPY continues to firm up against the USD 0.15% stronger overnight. The U.S senate finally reached a deal to fund the government until December this year as part of the hurricane Harvey relief fund, the agreement also pushes back the 30th September deadline to pass a budget, temporarily avoiding a government shutdown. This took US yields up a bp or two. It is reported that whilst Trump approved of the Democratic proposal it was met with opposition from fellow Republicans. The yield on the US 10-year was up 3.3bps and equities opened higher after short term stability was provided in the US government funding deal. The Kopsi rose 1.1%, heading for its best day since June after trump stated military was not his first choice in dealing with North Korea. The CNY was fixed stronger for a 9th consecutive day, the longest run of stronger fixings since 2011. In the news, hurricane Irma has devastated the Caribbean and Puerto Rico with no signs of the storm being downgraded, it is due to hit US soil on Sunday. Ahead today we have the Riksbank and ECB monetary policy meeting. On the data front this morning we have UK hlifax House price index, EU Q2 GDP and of course the main event the ECB meeting and Draghi press conference.. Good luck.