Market wrap: risk-averse mood permeated US markets overnight - Westpac

Analysts at Westpac offered their market wrap.

Key Quotes:

"Global market sentiment: A risk-averse mood permeated US markets overnight. US equities, interest rates, the US dollar, and oil prices all fell.

Interest rates: US 10yr treasury yields fell from 2.41% to 2.37%, while 2yr yields were more resilient, nudging higher from 1.68% to 1.70% - the highest level since Oct 2008. Fed fund futures yields continued to price the chance of a December rate hike at almost 100%.

Currencies: The US dollar index fell sharply, down 0.8% on the day. Outperformer EUR was helped by strong German economic data, rising from 1.1670 to 1.1805 – a three-week high. USD/JPY fell from 113.90 to 113.31. AUD ranged sideways between 0.7613 and 0.7650. Underperformer NZD extended its domestic session decline to 0.6845 before rebounding to 0.6888. AUD/NZD’s domestic session rise extended to 1.1140 before reversing to 1.1076.

Economic Wrap

German GDP growth rose from an annual pace of 2.3% to 2.8% in Q3 (vs 2.3% expected). In a separate report, economic sentiment (ZEW) rose from 87.0 to 88.8 (vs 88.0 expected). US PPI rose 0.4% in Oct (vs 0.1% expected), for an annual pace of 2.8%. The core measure rose 2.4% annual (vs 2.2% expected). Small business sentiment (NFIB) rose from 103.0 to 103.8 (vs 104.0 expected). FOMC member Bostic thought a gradual rate hike path was appropriate over the next two years."

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 securities. 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 Forex 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.