Morning Update – 02/09/2016 – by Arjun Lakhanpal

Morning all.. After all the noise round the weak US data yesterday, Wall St closed in a muted fashion; Unchanged at the close. Bond yields fell on the news but they also turned and rallied into the late afternoon finishing a couple of basis points higher. Asia has had a very quiet session with the Nikkei also around unchanged at the close as traders are now clearly focused on the US employment data due later today. FX markets also quiet in Asia with GBP holding gains. Overnight UK business confidence improved after post-referendum slump: YouGov – The overall confidence index reached 109.7 in August from 105.0 in July, regaining much of the ground it lost immediately after the UK voted to exit the European Union on June 23, when it fell from June’s 112.6. But companies remained downbeat about the economy in the next 12 months. Although the proportion of pessimistic businesses fell to 45 percent in August from 49 percent in July, that was still well above the 25 percent posted in June, before the referendum. USDJPY holding above 103.00 in Asia and sits close to recent highs. BoJ’s Sakurai (Reuters): can use existing tools to ease further rather than use the policy review for a major overhaul; no need to remove the base money target; could look at ways to stop the yield curve from flattening too much; not reaching any limit on policy; sees room to increase asset buying & cut rates further; helicopter money not possible; buying foreign bonds not possible as it would be like FX intervention..This morning we get Norway and Spanish unemployment data, Italian GDP, UK Construction PMI and EU PPI but the main event is US Non-farm payroll data later. Good luck..