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

Morning all.. Wall St shrugged off a 3% fall in oil prices to close up 0.64% after better US consumer confidence data but Asia was soft with the Nikkei closing down 1.4%. Oil is unchanged as London walks in but still no deals in sight from Algiers. USD mostly traded stronger versus G10 FX pairs with AUD the only out-performer, up ~20bps despite the broader commodities marginal sell-off. WTI held below $45 a barrel whilst Brent traded up close to half a percent, over $46, after Saudi Arabia said they may accept higher output by some rivals and said opinions among OPEC members are finally moving closer together but WTI could not sustain the rally. Although this paves the way for a deal, no real progress is expected in Algiers and the market reacted accordingly. NZD and JPY were the under-performers in the G10 FX region, down ~25bps each respectively. Asian currency pairs remained range-bound overnight given the lack of key catalysts. This morning we get French, Italian and Swedish consumer confidence.. Good luck..