Markets overnight reviewed - ANZ

Analysts at ANZ explained that it was a fairly quiet offshore session, with markets watching political developments ahead of central bank meetings later in the week. 

Key Quotes:

"The main movers were equities, which remained under pressure as tech shares extended declines. The major US equity indices were down 0.3-0.8% at time of writing, European bourses had slipped 1-1.2%. The FSTE 100 had a better performance (-0.2%) with a lower GBP from election uncertainty helping. There wasn’t much else new to drive market direction.

Comments from ECB Coeure suggest the central bank is in data watch mode – “we are very much data-driven. We’ll discuss tapering whenever we’ll see the economic situation and the prospects of inflation ripe for discussion”. In Europe the yield rate curve flattened, especially in France and UK (10-yr -4-5bps), but there was little change in the US (up 1-2bps across the curve). 

In commodity markets, oil lifted after Saudi Arabia and Russia sought to reassure the market that coordinated production cuts by OPEC and it partners are reducing inventories. Qatar also said it was committed to cuts under the OPEC agreement despite its current political challenges with its neighbours. Grain prices fell 2.7% as rain fell across the US Corn Belt, aiding early season growing conditions."