Market wrap: risk sentiment remained elevated - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Risk sentiment remained elevated, pushing US equities to fresh record highs. Bond yields and the US dollar fell.

Interest rates: US 10yr treasury yields fell from 2.37% to 2.32% before steadying at 2.34%. There was no obvious news catalyst for the fall, although concerns a speech from the Catalan President would signal secession (it didn’t) may have featured. Fed fund futures yields continued to price the chance of a December rate hike at 87%.

Currencies: The US dollar index is down 0.4% on the day. EUR rose from 1.1760 to 1.1825. USD/JPY fell from 112.70 to 111.99. AUD preserved yesterday’s gains in a 0.7774-0.7797 range. NZD ranged sideways between 0.7057 and 0.7088. AUD/NZD consolidated between 1.1000 and 1.1023.

Economic Wrap

US small business confidence (NFIB) fell from 105.3 to 103.0 (vs 105.0 expected) – a 10-month low. Hurricanes may explain some of the fall, although non-affected regions also saw job creation expectations decline."