Morning Update – 28/09/2017 – by Arjun Lakhanpal

Morning all.. Wall St had a better day with the S&P closing up 0.4% but the Nasdaq under-performed again. Wall St was boosted by tax reform guidelines from Trump but many feel a lot of adjustments will see any final package looking rather different. The dollar followed yields higher and USDJPY above 113.00 saw the Nikkei close up 0.62%. The reforms are largely in line with expectations cutting the corporate tax rate to 20% from 35%, falling 5% short of the 15% promised during his campaign. AUDUSD 0.5% weaker and USDCHF, USDCAD and USDJPY made gains between 0.2-0.3%, the DXY hit a five-week high after that plans were announced. NZDUSD trended down 0.25% after the RBNZ left rates unchanged as expected overnight and noted the weaker currency is best for dealing with tradable inflation. In other asset classes, treasuries continue to sell off, U.S 10-years were up 10.3bps reaching an 11-week high and sit at 2.35% now. In the news, Teresa May’s Brexit concessions have started to ease the deadlock and now EU leaders are considering going some way to meet one of the U.K.’s demands, looking to bring forward talks about the transition period that would follow Brexit. Finally Japan’s lower house was dissolved on Thursday ahead of an expected snap Oct. 22 election being called by Prime Minister Shinzo Abe, as he seeks to confirm his mandate in the face a rising challenge from a popular new conservative party. Data this morning sees German regional and national CPI and EU Consumer confidence.. Good luck.