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More action overnight in US equities and oil - ANZ

Analysts at ANZ explained that markets had a little more action overnight with equities rising, currencies mixed, oil climbing, and treasuries little changed.

Key Quotes:

"Global equities were led higher once the US opened, reversing early losses. Both the DJIA and the S&P 500 are up 0.2% at the close. European shares ended the day 0.2-0.3% higher. There was more volatility in currency markets with USD/JPY falling 0.5% on rumours that the Bank of Japan will delay stimulus in November.

AUD climbed 0.7% and NZD rose 0.5%. CAD had a 1.2 cent round trip on a BoC policy statement the market thought was not dovish enough, followed by a more dovish press conference.

Emerging market currencies performed well against the dollar. Oil rose 2.8% on a larger-than- expected inventory drawdown (-5.25m bbl vs. -3.8m exp); prices hit a 15- month high. Gold spot rose 0.5%.

Longer-dated treasuries underperformed with news Saudi Arabia was set to sell about USD17.5bn in bonds, causing a degree of crowding out. The curve steepened a bit, but moves across the curve were within 1-2bps."

Author

Ross J Burland

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.

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