Morning Update – 21/08/2017 – by Arjun Lakhanpal

Morning all.. Wall St had a disappointing close after and earlier rally as it was announced Bannon would be leaving the US administration and stocks fell into the weekend close. The S&P down 0.18% and the Dow down 0.35%. The Nikkei also slipped to a close down 0.3%, as investors monitored war drills scheduled for the Korean peninsula and prepared for a key meeting of global central bankers. The world’s top economists and central bankers gather at Jackson Hole later this week amid tepid global inflation which will be among the hot topics on the agenda. Federal Reserve Chair Janet Yellen and European Central Bank President Mario Draghi will be among the officials addressing this year’s instalment of the annual conference hosted by the Kansas City Fed. The departure of Steve Bannon from the Trump administration over the weekend appeared to have little impact on FX as currencies were muted in the overnight session. Elsewhere, the UK will publish five new position papers for Brexit negotiations which will be tied in with consumption and service component GDP data meaning we could see some pressure on GBP this week. The market is looking for a quiet week ahead but comments into this JH gathering could impact as liquidity is expected to be light. This morning we get the German central banks monthly report and little else.. Looks like being a quiet one…US 10yr yield sits at 2.20%, gold is up a buck and a half and oil is a touch lower as Europe walks in. Good luck…