Morning Update – 03/10/2016 – by Arjun Lakhanpal

Morning all.. Wall St had a solid session as oil rallied and DB lifted off the lows… Asia also has seen some improvements although China is closed all week with the Nikkei up just shy of 1%..USD broadly stronger versus G10 FX for the start of the week with NZD and GBP the key under-performers, down ~40bps and ~25bps respectively. The UK currency traded lower in particular after Theresa May said over the weekend she’ll trigger the process of the U.K.’s withdrawal from the EU by the end of March, pledging to control immigration while retaining market access to the continent; GBPUSD traded to a low of ~1.2902 at the open to marginally retrace and settle ~30pips higher for the start of today’s LDN session. Japan’s Tankan index found large manufacturers’ sentiment toward broad conditions unchanged at 6 in September from June. That missed estimates of a rise to 7. The outlook also remained unchanged at 6, despite expectations it would rise to 8. After suffering a sharp 9.5pt fall to 46.9pts in August, the Australian PMI rose 2.9pts in September to an index level of 49.8, just shy of the 50 index level indicating the manufacturing sector is expanding. Production, sales and deliveries rebound, but new orders remain tepid. In broader assets, Brent declined from its highest close in six weeks – down ~45bps – dipping below $50. This morning we get a raft of manufacturing PMI data from across Europe and the UK.. Good luck..