Good morning,

- Asia stocks take heart from Wall Street rally, China gains…

- A closer look suggests that the $EUR and $USD have slowly lost their link to the S&P 500.

- US Equities Close: DJIA 16285.51 (+3.95%); S&P500 1940.51 (+3.90%); NASDAQ 4697.54 (4.24%).

- BoJ Governor Kuroda: '' China likely to achieve 6-7% real GDP growth this year, also expects 6-7% growth in China next year.. and If FOMC raises that means US strong, so is good sign....At this stage current QQE will achieve price target, no plans for further easing. Have been encouraging changes since beginning of QQE. Clear positive feedback with wages, inflation in place. Can avoid any serious financial instability during QQE, financial system in Japan has been solid and sound.''

- So far this session $NZD has been the best performing major vs $AUD with +0.12% spot returns while $JPY has been the worst with -0.32%.

- Asian stocks extended gains on Thursday as a sharp rebound on Wall Street and gains in battered Chinese shares eased fears of a deep and protracted global market rout, while the dollar rallied as risk aversion eased. Sentiment was also supported by comments from New York Fed President William Dudley on Wednesday who said the prospect of a September rate hike "seems less compelling" than it was only weeks ago given the threat posed to the U.S. economy by recent market turmoil...Ironically, U.S. stocks rallied on Wednesday on expectations that the Fed would hold off from hiking interest rates next month due to mounting global uncertainties, including China - the very factors that prompted heavy selling in the previous sessions.

- Greece's PM Tsipras: Failure of talks could lead to civil war, bank collapse. Some EU states wanted revenge in July. Return to Greek Drachma was never a chance. People wanted agreement with creditors; deal with creditors includes debt relief commitment....Euro exit should be "unthinkable disaster" for Greece.

- Fed's Dudley drops a major dovish hint: "I've said many times I do really hope we can raise interest rates this year...but "Sept rate hike seems less compelling to me than it was a few weeks ago. Core inflation rate pretty stable so far while China's slowdown has significant implications for commodities. Furthermore, International and financial developments can impinge outlook. Finally, Fed concerned about everything that affects outlook, not just economic data.''

- The mess that is the stock market over the past few days is drawing numerous comparisons to similar drop-offs of the past, most notably the one in 1998. In 1997-1998, a slowdown in emerging markets, particularly Asia, seemed to spur concerns over global growth. This led to one of the biggest and quickest drop-offs in the US stock market in years. Sound familiar? According to Aneta Markowska at Societe Generale, investors should caution themselves before using the comparison. "Concluding that this time is the same would be neither fair not accurate," Markowska wrote. "The structure of the global economy has changed dramatically since the late 1990s and the transmission channels are not the same today."

- $RUB, $BRL, $MYR expected to be the most active emerging market currencies vs $USD today.

- Australian Dollar Gains as Capex Data Boosts RBA Policy Bets.

- Major Today News: US Pending Home Sales, US Jobless Claims, Jackson Hole Symposium Day 1, EU Money Supply.

Have a nice Day !

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