Morning Update – 19/10/16 – by Arjun Lakhanpal

Morning all.. Wall St closed higher as investors saw the rather soft CPI placing some doubt in the Fed minds regarding a hike and thus S&P closed up 0.61% but Asia was extremely quiet with the Nikkei up 0.3% even with China GDP coming in as expected.. Compared to yesterday’s LDN close, G10 FX remained relatively range-bound overnight with all currencies within ~15bp ranges for the start of today’s LDN session. NZD the out-performer on the margin with the price action post yesterday’s CPI and the GDT auction overnight quite telling of NZD’s resilience to any sell-off. Little to note elsewhere with no tier 1 data releases out of the region. In broader asset classes, Brent close to 1% higher on unexpected draw in weekly US API inventory data: oil supplies fell 3.8mn barrels vs 2.1mn build expected, whilst Nikkei and S&P Eminis held marginal gains. China data the focus of the Asia region overnight. China’s Q3 GDP, Retail Sales, and Fixed Asset Investment all met expectations; industrial production missed expectations releasing at 6.1% y/y, 0.3% lower than expected. To note in particular from the broader set of data, the economy grew at a rate of 6.7% in the third quarter, while September retail sales rose at 10.7% y/y; the highest in eight months – emphasizing the increasing importance on the domestic economy – 71% of GDP was consumption. This morning we get UK Unemployment data and EU Construction output.. Good luck.