Morning Update – 23/09/2016 – by Arjun Lakhanpal

Morning all.. Wall St had another solid showing yesterday, closing up 0.65% as traders digested the Fed statement and see lower rates for longer. Asia was broadly higher but the Nikkei was disappointing closing down 0.36%. Japan September flash manufacturing PMI shows expansion for first time in seven months- Japanese manufacturing activity expanded for the first time in seven months in September, a preliminary survey showed on Friday, in a tentative sign that economic growth could pick up pace.  FX markets rather quiet but there are some signs of a weakening USD this morning after a steep fall in US yields yesterday. The US 10yr stands at 1.62% and oil is down over 1% this morning. Bank of England’s Forbes sees no case for further rate cut – But Forbes – an external member of the BoE’s Monetary Policy Committee – said she believed August’s rate cut and measures to support bank lending were probably sufficient for now. “The initial effect on the UK economy of the referendum has been less stormy than many expected,” she said.. There is some nervousness building over the race for the White House in the US as Monday’s presidential debate could be moment of truth for election—and stocks – The first presidential debate Monday may be a near-term catalyst for stocks, if one candidate or other looks set to break out. USD posts gains across the G10 FX board overnight as the DXY recoups all of its losses of yesterday. NZD the largest G10 underperformer – down half a percent – on little news, data or clear drivers. GBPUSD drifted lower for the whole of the overnight session after headlines that the UK will formally begin its exit early next year. This morning we get French Q2 GDP data from France and PMI data from France, Germany  and the EU. Good luck..