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Banks weak, but commodities firming
News related to Deutsche Bank turned around what was a developing risk positive trend in global markets and currencies this week. A stronger oil price helped weaken the JPY and strengthen energy producers, more broadly boosting risk appetite. We are not convinced problems at Deutsche bank will have a sustained negative impact on global markets, and would prefer to fade the risk-off mood on Thursday. However, as we approach month-end and key US inflation data on Friday, patience is advised. Sentiment is likely to remain fragile in the lead-up to the US election and a probable rate hike by the Fed in December. Low ... (full story)