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Morning Briefing September 7th 2016 Wednesday is another full calendar, with plenty scheduled for release on both sides of the Atlantic.

The US calendar kicks off at 1100GMT, when the MBA weekly applications index crosses the wire.

The European calendar gets underway at 0600GMT, with the publication of the July German industrial production data.

Weekly questions to the UK Prime Minister get underway at 1100GMT, with Brexitexpected to be to the fore. The session will be PM Theresa May's second PMQs since taking office in July.

At 0645GMT, the French foreign trade data and current account data will be published. In the UK, the Halifax August House Price Index will be released at 0730GMT. The Riksbank will publish their latest policy decision at the same time, with analysts looking for rates to be unchanged at -0.5%. Further UK data will be published at 0830GMT, when the latest Index of Production will be released. Riksbank Governor Stefan Ingves will hold a press conference on the bank's monetary policy decision, in Stockholm, starting at 1000GMT.

Bundesbank Executive Board member Andreas Dombret speaks at the ECFS Symposium, in Duisburg, Germany. At 1255GMT, the US Redbook Retail Sales Index will be published. BOE Governor Mark Carney and other MPC members will appear before the Treasury Select Committee from 1415GMT, to answer questions on the August Inflation Report and general monetary policy.

Global Economic Trading Calendar

The Bank of Canada's latest interest rate decision will be published at 1400GMT, expected to be unchanged at 0.5%. Canada's IVEY PMI data will be published at the same time. Kansas City Fed President Esther George and Richmond Fed President Jeffrey Lacker will testify at a hearing before the House Committee on Financial Services' Subcommittee on Monetary Policy and Trade on the regional Fed banks' governance, start At the same time, the latest JOLTS data will be released. The Fed beige book report on economic conditions will be published at 1800GMT, with the latest Treasury STRIPS data due at 1900GMT

Markets FOREX: The yen craved the most attention in the Asia-Pacific region today, Sankei news reported some discord among the BoJ hierarchy on monetary policy and soon after, a former BoJ executive director said the BoJ will leave its stimulus program unchanged this month, citing little deterioration in economic fundamentals and growing caution about the risks of expansion. Dollaryen was sold from the get-go, the rate falling rapidly from Y102.12 to Y101.21 before stabilizing and was last at Y101.42. Aussie-dollar opened at $0.7688 and traded in a $0.7653 to $0.7689 range, the slight miss on local GDP data proved a minor inconvenience to Aussie bulls, the pair recovering quickly from the low and last traded at $0.7676. Eurodollar recovered from the yen induce dip to Y1.1233 and traded back to $1.1258. Euro was last at $1.1254, effectively, unaltered from this morning's open. Kiwi-dollar was a mild outlier against the greenback, rising from $0.7397 to $0.7436 on predominantly Aussie-kiwi flow following the slightly weaker-thanexpect Aussie data. The cross is fast approaching the year-to-date low of N$1.0313 (July 8th) and last traded at N$1.0323 US STOCKS CLOSE: US stocks shrugged off the soft ISM non-mfg data to close in positive territory Tuesday, with investors taking comfort from reduced odds of a Sept hike. The DJIA closed up 0.25% at 18,538.12, the

Nasdaq Composite closed up 0.50% at 5,275.908 and the S&P 500 closed up 0.30% at 2,186.48. The most recent highs for the DJIA and S&P 500 were 18,572.09 and 2,187.94, seen August 26 US INDEX FUTURES: US stock index futures are trading slightly higher in quiet dealings, with Asian markets providing little in the way of direction. All eyes will be on Apple today when it launched it new Iphone 7, although chatter from Chinese online websites has been muted so far, Reuters reports. Currently the Jun'16 e-mini S&P futures are trading up 0.50 of a point at 2,185.00, the Jun'16 e-mini Nasdaq futures are trading up 2.50 points at 4,830.00, while the Jun'16 e-mini Dow futures are trading up 4 points at 18,527. US TSYS: Cash treasuries are seeing some cheapening here on decent volumes, with some ~600 mln changing hands on reports of hedging and re-allocation trades ahead of a heavy corporate issuance slate. There is some $125 bln worth of deals coming to market this month, with some $22.75bln priced on Tuesday in the 4th highest issuance day for 2016. The Fed's Lacker and George have just released comments on the structure of the Fed to congress, saying it is very sound, which have had very little impact so far, with the hearing beginning in 30-minutes time.

JAPAN STOCKS: Japanese stocks have posted modest losses on the back of a stronger Yen, while confusion continues to reign ahead of the Sep'21 BOJ meeting after Sankei News reported that the BOJ is struggling to find a consensus. The Nikkei has closed for lunch down 0.65% or 111.74 points at 16,970.24, while the Topix is down 0.68% or 9.21 points at 1,343.37. GOLD: Spot gold last down $1.90 at $1,348.15 per ounce, in a $1,351.25 to $1, range so far this morning in Asia, with the market seeing light profit taking despite the US Dollar falling further against the Yen. Commerzbank notes that many gold mining companies have evidently "taken advantage of the higher gold prices in the second quarter for hedging purposes. The 2016 high was $1,375.34 seen July 11. OIL: WTI crude oil futures for Oct'16 delivery last down $0.10 at $44.73 per barrel, after a $44.94 to $44.68 range in Asia today. The front contract spiked overnight in response to reports (BBC and others) that the Russian and Saudi Arabian energy ministers agreed to discuss measures to stabilize crude prices. A joint task force will meet later in Sept, and again in October and November, the report said. Earlier, WTI broke above its 55-day moving average, currently at $45.38, to test high levels last seen August 30, when prices peaked at $47.49, now the next level of resistance..

Technical Analysis BUND: (Z16) Pressuring Key Resistance *RES 4: 169.07 Weekly Bollinger band top *RES 3: 168.13 High July 6 *RES 2: 167.94 Bollinger band top *RES 1: 167.86 High Aug 30 *PREVIOUS CLOSE: 167.28 *SUP 1: 166.97 55-DMA *SUP 2: 166.36 Low July 27 *SUP 3: 165.51 Low June 30 *SUP 4: 165.17 100-DMA *COMMENTARY: Bears have been unable to manage another dip below the 55-DMA with U16 bouncing from around this level again Friday. The 166.36-97 support region remains key. Bears continue to look for a close below 166.36 to confirm breaks of key supports, ending bullish hopes and initially targeting 165.17-51. Bulls still need a close above 168.13 to confirm a bullish bias and above 168.86 to shift focus to the Weekly Bollinger top and then weekly bull channel tops above.

EUROSTOXX: 3097.96 Resistance Remains An Issue *RES 4: 3195.79 High Jan 5 *RES 3: 3156.86 Monthly High Apr 21 *RES 2: 3145.62 Weekly Bollinger band top *RES 1: 3097.96 High May 31 *PREVIOUS CLOSE: 3070.16 *SUP 1: 3063.40 High Aug 15 now support *SUP 2: 3005.32 Low Sept 1 *SUP 3: 2970.19 100-DMA *SUP 4: 2949.60 Low Aug 22 *COMMENTARY: Despite popping above 55 & 200-WMAs (3081.53 & 3082.58) bulls have been unable to take out the key 3097.96 resistance. Bulls need a close above 3097.96 to confirm breaks of the 55 & 200-WMAs and to shift focus to tests of the 100-WMA (3238.79). Layers of support remain with bears needing a close below 3063.40 to ease pressure on 3097.96 and below 3005.34 to hint at a deeper correction.

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