Market snapshot: equities trended lower with US T-bill yields down, dollar pressured – ANZ

Analysts at ANZ Bank New Zealand Limited, (ANZ), offered a market wrap:  

Key Quotes:

“Equities trended lower with US Treasury yields down. The USD was generally under pressure and JPY rallied, while commodity currencies were on the back foot.”

“The S&P and DJIA were down 0.2% and 0.3% respectively at the time of writing led by financials. In Europe, the DAX and CAC 40 closed 0.6% lower, but the FTSE squeezed out a 0.1% gain.”

“Treasury yields were down around 2bps across the curve after Trump voiced discontent over higher interest rates.”

“The President was also critical about the valuation of CNY. Commodities were mixed, with the CRB up slightly as metals continued to slip and most soft commodities gained. Oil contracts diverged with WTI up 0.9% and Brent down a touch.”

“In the teaser interview clip released by CNBC, Trump revealed he is not thrilled with higher interest rates, but said he’s letting the Fed do what they feel is best. “I don’t like all of this work that we’re putting into the economy and then I see rates going up.” He also said that you look at China and “their currency is dropping like a rock.”

“In Europe rates are low and their currency is low. The Whitehouse later said that the President respects the independence of the Fed. Additional details will likely be available when they air the whole interview tonight.”