Market wrap: risk aversion permeated - Westpac

Analysts at Westpac oferred a market wrap.

Key Quotes:

"Global market sentiment: Risk aversion permeated most markets overnight, the S&P500 currently down 1.2% to a four-month low. There was no visible news catalyst, rather jitters ahead of the US elections.

Interest rates: US 10yr treasury yields initially rose from 1.84% to 1.88% but eventually buckled under the weight of risk aversion and is currently at 1.81%. 2yr yields fell from 0.87% to 0.82%.

Currencies:  The US dollar index is down 0.8%. Testament to US election nervousness, the Mexican peso was the worst performer overnight, USD/MXN rising from 18.78 to 19.27. EUR rose from 1.0950 to 1.1069 – a one-month high. USD/JPY fell from 105.12 to 103.80. AUD initially extended its post-RBA rally to 0.7689 before succumbing to the risk-averse mood, retracing to 0.7640. NZD similarly rose to 0.7191 before retracing to 0.7155. AUD/NZD ground lower from 1.0700 to 1.0665, with only about 20 pips of that decline clearly attributable to a surprisingly strong GDT dairy auction."