Morning Update – 11/08/16 – by Arjun Lakhanpal

Morning all.. Wall had another quiet session but closed down 0.25% but again the action was in FX and bonds with oil playing a part too. US yields fell again and dipped briefly below 1.5% yesterday and remained marginally above that level in Asia, while the yield on 10-year UK Gilts tumbled to a record low of 0.52 percent. The Nikkei was closed but regional stocks slipped. Broad risk sentiment remains on the back foot as oil prices tumbled on news of a surprising jump in U.S. government stockpiles. MSCI’s broadest index of Asia-Pacific shares outside Japan  fell 0.5 percent. It hit a one-year high on Wednesday and has broadly outperformed the MSCI world index since end-June. In Asia, yields on 10-year benchmark New Zealand bonds NZ10YT fell to 2.18 percent after the Reserve Bank of New Zealand cut its official cash rate by 25 basis points to a record low of 2.0 percent as widely expected. But the Kiwi found its wings and flew higher as many expected a deeper cut and a more dovish central bank. More clarity about the U.S. economy’s health and the Federal Reserve’s next move on interest rates could come with Friday’s release of July retail sales and a speech by Fed Chair Janet Yellen later this month. Meanwhile this morning we get CPI data from France, Sweden and Italy.. Good luck.