Analysts at ANZ Bank New Zealand Limited explained that equities were on the rise overnight with treasury yields up a couple of basis points and the USD declining.
Key Quotes:
“Global equities continued to rally with shares in Europe up 0.3-0.6% and shares in the US higher, outside of tech. The Dow is up 0.7% at the time of writing and the S&P 500 up 0.1%, but the Nasdaq is down 0.2%.”
“US Treasury yields continued to creep upwards, with the 10-year yield up 2bps at the time of writing. Global yields are also generally higher (UK 10y +4bp).”
“Oil climbed after it was reported that stocks actually fell compared to API’s report of an increase: WTI rose 1.9% to USD71.15/bbl.”
“Gold is up 0.4% at the time of writing to USD1,204/oz.
Data/event pulse
“US current account reflects repatriation flows: The deficit came in slightly smaller than expected, but the most interesting aspect was perhaps that it suggests roughly a third of the ~USD900bn offshore corporate cash has been brought back onshore through the first half of 2018.
Bits and bobs: US housing data was mixed: starts beat expectations but building permits undershot. UK inflation unexpectedly accelerated to 2.7% in August but the strongest drivers were the most volatile components. The Chinese Premier said a yuan devaluation would “do more harm than good”.
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