Morning Update – 01/09/2017 – by Arjun Lakhanpal

Morning all.. Wall St closed firmer after US data came in with solid results but the session was muted as we wait for the big US payrolls data later today. The same was the case in Asia where the Nikkei closed up 0.2%. G10 currencies were muted overnight with some mild USD strengthening as investors wait for today’s NFP. The main story overnight is probably the yuan’s continued long march higher. This will have been helped by strong data, with China’s August Caixin final manufacturing PMI coming in at 51.6 versus 50.9 consensus. The DXY was flat overnight and ended August in negative territory, its 6 consecutive month of declines and longest losing streak in 14 years. In other asset classes, equities were mixed overnight with the Hang Seng up 0.35% and the Topix losing 0.15%. Prices in oil continue to fluctuate as one third of oil-refineries have been impacted by hurricane Harvey in Texas, the refineries that are still open are struggling to import crude oil. For the first time in 5 years the U.S made its first emergency draw of the strategic petroleum reserve. There was some good Australian data (AIG performance of manufacturing index) came in at 59.8 (last 56.0). In Japan, Q2 business Capex: rose 1.5% YoY against the expected 7.9%. August manufacturing PMI was 52.2 versus 52.8. Neither of these prints look that impressive, but USDJPY is static. This morning we get PMI manufacturing from Sweden, France, Germany, the EU and UK. We also get Norwegian Unemployment data.. Good luck.