Market wrap: US tax reform guidance fuelling bullish market - Westpac
Analysts at Westpac offered a market wrap.
Key Quotes:
"Global market sentiment: US bond yields rose further, as more officials pointed to tax reform guidance likely to be released later this month. The US dollar also participated, and equities held gains (S&P500 nudging to a fresh record high).
Interest rates: US 10yr yields rose from 2.15% to 2.20% - a three-week high, 2yr yields from 1.33% to 1.35%. Fed fund futures yields firmed, pricing the chance of a December rate hike at 46% (41% previously).
Currencies: The US dollar index is up 0.7% on the day. EUR fell from 1.1995 to 1.1873. USD/JPY rose from 109.90 to 110.69. AUD fell from 0.8044 to 0.7971. NZD fell from 0.7304 to 0.7220. AUD/NZD ranged sideways between 1.1000 and 1.1040.
Economic Wrap
US PPI rose 0.2% in August (slightly disappointing vs 0.3% expected), for an annual pace of 2.4% (vs 2.5% expected). However, a core measure (excluding food, energy, and transport) rose 0.2% (vs 0.1% expected). Overall, PPI inflation has been limited by sluggish inventory gains."
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
