Market wrap: risk sentiment elevated, dollar up - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Risk sentiment remained elevated, pushing US equities to fresh record highs at the NY open. The US dollar rose, while bond yields consolidated recent gains.

Interest rates: US 10yr treasury yields ranged between 2.36% and 2.40, while 2yr yields initially made a nine-year high at 1.59% before slipping back to 1.56%. Fed fund futures yields firmed, now pricing the chance of a December rate hike at 99%. Trump said he’s “very, very close” to making the Fed Chair decision.

Currencies: The US dollar index is up 0.3% on the day. EUR performed poorly amid a fresh wave of Catalonian unrest, falling from 1.1776 to 1.1725 – a two-week low. USD/JPY consolidated the post-election gains, ranging sideways between 113.60 and 114.00. AUD slipped from 0.7834 to 0.7797. NZD consolidated post-government announcement losses, between 0.6955 and 0.6988. AUD/NZD slipped from 1.1230 to 1.1190."