Morning Update – 06/10/16 – by Arjun Lakhanpal

Morning all.. Wall St rallied 0.43% as oil staged a strong gain on a draw of inventories and Asia also saw some gains with the Nikkei up 0.45% also..Australia’s ASX 200 finished up 0.55 percent, or 30.075 points, at 5,483, with its energy subindex gaining 1.97 percent and the heavily-weighed financials subindex rising 0.7 percent. On the data front, Australia posted a lower-than-expected seasonally-adjusted trade deficit of A$2.01 billion in August, according to the Australian Bureau of Statistics. The value of imports and exports in August were nearly unchanged from the previous month. USDJPY strength clearly helping the Nikkei higher but oil was a little weaker down -.45%. US yields held on to a lot of yesterdays gains with the 10yr at 1.71%. US yields are a  dominant theme and strong US data yesterday has seen markets pricing in better chances of a hike in December and some now pricing a small chance of a move in November.. Fed speakers seem to support this view. The German government is pursuing discreet talks with U.S. authorities to help Deutsche Bank (DBKGn.DE) secure a swift settlement over the sale of toxic mortgage bonds, according to sources in Berlin.. This morning we get very little data of note but some focus will now be on the ECB minutes released today after talk of tapering discussions. Good luck.