Analysts at Westpac offered a recap of the day's events.
"European share markets took heart from the late Friday Wall Street rally, most bourses posting gains above 1%.
US markets extended their recovery, again without major news. The White House’s infrastructure proposal had been widely reported ahead of its release and the key points remain lukewarm for markets – the $200bn in federal spending is to be offset with $200bn in cuts to current transportation spending, while the headline $1.5 trillion total is just an estimate of what could happen if state and local governments and private investors join the federal government on projects.
China reported a record CNY2.9 trillion in new bank loans in Jan, way above expectations nearer 2trn. The broader measure of financing was nearer expectations, so some of the upside surprise on bank lending seems to be curbs on non-traditional lenders.
EUR/USD ranged between 1.2235 and 1.2295, up 0.2% overall. GBP/USD was about flat, fading back to the low 1.38s. USD/JPY eked a narrow sideways range of 108.40-108.80. Japan returns from holiday today.
Outperformer AUD/USD rose from 0.7810 to just above 0.7840 in late NY trade. NZD performed poorly, falling from 0.7277 to 0.7233. As a result, AUD/NZD rose 0.5% to 1.0825/30.
US 10yr treasury yields initially rose from 2.86% to 2.89% - a fresh four-year high - but later retraced. 2yr yields eased slightly lower, to 2.08%. Fed fund futures yields rose slightly, now pricing the chance of another rate hike in March above 90% (Bloomberg estimate)."
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