Market wrap: Animal spirits were high - Westpac
|Analysts at Westpac offered a market wrap.
Key Quotes:
"Global market sentiment: Animal spirits were high, all the major US equity indices (S&P500, Dow, Russell, Nasdaq) making fresh all-time highs overnight. The US dollar was also buoyant, despite disappointing US PMIs (vs strong EU PMIs).
Interest rates: US 10yr treasury yields reopened after Monday’s holiday at higher levels, trading to 2.46% but later retracing to 2.41% where it closed on Friday. Shorter yields sustained gains, though, the 2yr in a higher 1.20%-1.22% range (vs 1.19% Fri) and the auction awarded at 1.23%. Fed fund futures implied rates were slightly firmer, the April contract at 0.72%, which implies around a 40% chance of a rate hike in March).
Currencies: The US dollar index is around 0.4% higher. EUR was the worst performing currency, falling from 1.0590 to 1.0526, ignoring a strong set of PMIs in favour of looming election risks. USD/JPY eked a slightly higher range of 113.40-113.80. AUD was capped by the stronger USD, ranging between 0.7650 and 0.7680. NZD initially fell from 0.7160 to 0.7130 (a one-month low) but recovered to 0.7165. AUD/NZD extended its month-old rally to 1.0738 – a four-month high. Fundamental news was cross supportive - iron ore rising 2.7% to $94.86( the highest since Aug 2014) while the GDT dairy auction recorded a 3.2% decline."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.