Market wrap: risk appetite remained elevated - Westpac

Analysts at Westpac offered the market wrap for the US session.

Key Quotes:

"Global market sentiment: Risk appetite remained elevated, witness record highs in the S&P500 and NASDAQ. Mixed US data (productivity disappointed) helped depress US interest rates and the US dollar.

Interest rates: US 10yr treasury yields initially rose from 1.57% to 1.59% but then fell during the NY session to 1.53%. The 2yr yield slipped from 0.73% to 0.71%. Market pricing of the Fed funds rate slipped, implying around a 20% chance of a rate hike in September, a 50% chance by December, and 100% by Nov 2017.

Currencies:  The US dollar index fell by around 0.3%. EUR rose from 1.1071 to 1.1123. USD/JPY fell from 102.50 to 101.80. AUD extended higher, from 0.7640 to 0.7687 – a three-month high. NZD rose from 0.7110 to 0.7180.  AUD/NZD made a three-week high at 1.0744 early in London and then consolidated."