Morning Update – 29/09/2016 – by Arjun Lakhanpal

Morning all.. Wall St rallied on the back of a steep jump in oil prices after OPEC agreed a cut in production. S&P closed up 0.53% and Asia also rose with the Nikkei up almost 1.5%. Commodity currencies (CAD, NOK, NZD, AUD) the main out-performers versus the USD overnight with CAD the largest G10 FX out-performer, up a percent versus the USD in line with headlines from OPEC. Brent pushed above $49 whilst WTI held above $47 after headlines confirmed that OPEC had agreed to limit output to range of 32.5-33mm barrels per day for the first time in eight years; this is marginally down from August levels of 33.2 million barrels a day. However, the cartel will wait until November to finalize a plan to tackle a supply glut. WTI at $47.08 this morning which is almost unchanged. Risk-on tone prevailed in broader asset classes dragged higher by the commodities complex. USDJPY traded up a percent overnight with JPY the only under-performer versus the USD, in line with positive risk theme and a fall in its retail sales release for the month of August from a month earlier, marking their first fall in three months. Nikkei traded up ~1.6% whilst S&P traded up marginally. EUR and GBP remained within tight ranges compared to yesterday’s LDN close. This morning we get the regional German CPI data starting with Saxony, Spanish Retail sales and CPI and German unemployment data.. We also have UK Mortgage approvals and consumer credit data.. good luck