Analysts at ANZ explained that global equities were biased lower with the USD mixed.
Key Quotes:
“Treasury yields dropped a couple of bps in the New York afternoon and oil fell. Risk assets started to stabilise during the European afternoon, but with major tech shares still declining on the US open sentiment became shakier again.”
“A strong non-manufacturing ISM was not enough to turn the downtrend with Nasdaq off another 1.1%. The Dow is up 0.1% at the time of writing but the S&P 500 is down 0.5%. Treasury yields briefly rose after the strong US data, but declined slightly later in the session.”
“The USD was mixed against the G10 with JPY and CHF rising, but SEK and NOK fell.”
“RUB fell the most of the emerging markets after major allies of the UK backed their assessment of Russia’s assassination attempt.”
“Other EM currencies performed better, though their equities remain under pressure. WTI oil is down 1.4% at the time of writing at USD 67.78, weighing on CAD. Gold rose 0.3% back over USD1200/oz.”
Note:
The analysts also explained that US President Trump is widely expected to announce USD200bn of tariffs on imports from China soon after a consultation period ends today.
Key Quotes:
“But other disruptions are on the horizon too. An outbreak of deadly African swine fever means the UN may recommend a wider ban on Chinese pork products today.”
“This will increase demand for US and European product, a competitor for New Zealand proteins.”
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