Morning Update – 16/09/2016 – by Arjun Lakhanpal

Morning all.. Wall St rallied with some relief and Bond yields calmed somewhat which saw the S&P close up 1%. Asia was quiet but the Nikkei managed to rally 0.68% even though USDJPY was a tad weaker at one point making a low of 101.74. Data wise New Zealand consumer confidence came in stronger (121 vs 117.7) & Singapore trade balance was slightly lower – FX extremely stable overnight. Bloomberg hike monitor, now showing the probability of a fed hike this year below 50% using fed fund futures and less than 20% in September. Focus on Japan today with just 5 days until the BOJ, the Japanese FSA issued a warnings for banks related to the risk of rapid fluctuations in interest rates and the Japanese Bankers’ Association stated that negative interest rates were not effective and the BOJ should consider the negative impact on the financial sector. Following these statements, Aso, Japan’s finance minister, said that he was closely co-ordinating with the BOJ, but that monetary policy was up to them to decide. FX markets rather quiet and oil is slightly lower.. This morning we get no data of note with the focus on US CPI later.. Good luck..