Analysts at ANZ explained that sentiment was generally better overnight despite the data pulse disappointing slightly.
Key Quotes:
“US equities found some support, while Europe played catch-up to the afternoon sell-off the day before.”
“At the time of writing US indices were up 0.6-0.9% with telecommunications, information technology and financials leading the charge. The Euro Stoxx finished down 0.9%.”
“The downward revision in Q1 GDP had minimal impact on the market. US treasury yields pushed 1-3bps higher across the curve. Canadian yields lifted 4-5bps after Poloz sounded more hawkish during media interviews following a dovish speech about monetary policy transparency. The chance of a hike on the 11th July meeting is back at 75% after being at 55% the day before.”
“Oil climbed higher in the NY morning, up about 0.7%.”
“The USD was stronger except against the CAD which rose against all in the G10.”
“Emerging market currencies remained under pressure.”
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