Morning Update – 13/09/2016 – by Arjun Lakhanpal

September 13, 2016 by 1000000.mining@gmail.com

Morning all.. Focus overnight was mostly on the aftermath of Fed’s Brainard speech as we enter the blackout period ahead of September FOMC. Wall Street soared after Brainard was her usual dovish self and disappointed many hoping she may bend. Brainard’s dovish comments blew a further hit to the already low odds for a hike at the next meeting. Stocks in the US loved it with Wall St closing up nearly 1.5% as yields fell. This took the dollar lower too but the Asian market seemed less convinced with the Nikkei up just 0.3%. Fed’s Brainard (Voter, Dove): less compelling to tighten pre-emptively; wants more progress on inflation and consumer spending before hiking rates; monetary policy toolkit leads to a prudent stance; effect on inflation of further labour market gains likely to be moderate/gradual; more concerned about undershooting inflation; raising inflation target, nominal income target, negative rates merit further study; adverse foreign shock spill-over have been more powerful than previously; Japan is an example of low-inflation/low-growth risks, Fed policy should minimize this risk.. US 10yr yield sits at 1.66% and Oil is lower with WTI down 0.9%.. Elsewhere Japan Fin Min: expects BoJ to make assessment on policy with aim of hitting 2% price tgt; BoJ/MoF are coordinating closely with each other.. USDJPY in a tight range but AUD has been weak as iron ore and Steel continue to fall… This morning we get CPI data from Spain, Sweden and the UK and EU unemployment and German ZEW data.. good luck…