Morning Update – 26/09/2016 – by Arjun Lakhanpal

Morning all.. Wall St closed down just over 0.5% Friday as oil slumped on weak oil prices. The whole oil market is on watch for any signs of a potential deal to freeze output so oil will remain choppy for a few days. OPEC members meet on the sidelines of an energy forum in Algeria Monday-Wednesday. Asia saw the Nikkei also fall, closing down just over 1%. Oil has had a small bounce standing at 0.8% higher. With last week’s BoJ and Fed meetings turning out to be relatively investor-friendly, the focus now shifts to politics, as US presidential hopefuls Trump and Clinton square off for the 1st of 3 debates on Monday night US time. If Trump is perceived as winning Monday’s debate, it will force markets to start pricing in the chance of a Trump presidency and investors will likely sell EM and risk assets in a knee-jerk reaction. US yields were quiet in Asia but remain weak with US 10yr at 1.615%. A quiet start to a busy week in FX with no outstanding moves overnight and not a great deal of data today with German IFO data and Italian Retail Sales. We do have a press conference from Kuroda at some point early morning.. It is a relatively quiet week for top-tier US data. August new home sales are out Monday..  Good luck..