Market wrap: mixed day with weaker dollar, higher stocks - Westpac
|Analysts at Westpac offered a market wrap.
Key Quotes:
"Global market sentiment: US interest rates and the US dollar fell, while the S&P500 made a fresh all-time high. Yesterday’s FOMC minutes may have lingered.
Interest rates: US 10yr treasury yields fell from 2.45% to 2.38%, while the 2yr fell from 1.22% to 1.19%. US Fed fund futures implied rates were mixed, the April contract at 0.72%, implying around a 40% chance of a rate hike in March. FOMC member Lockhart, who retires soon, said the data supports 2-3 hikes this year. Kapaln said the Fed should move sooner than later. Treasury Secretary Mnuchin said a long bond (50yr to 100yr) is worth consideration, and that tax reform by August is the aim.
Currencies: The US dollar index is around 0.2% lower. EUR rose from 1.0540 to 1.0595. USD/JPY fell from 113.40 to 112.57. AUD rose from 0.7680 to 0.7741 – a four-month high. NZD rose from 0.7180 to 0.7247. AUD/NZD consolidated its post-CAPEX slide, between 1.0660 and 1.0700."
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