Overnight saw Wall Street put in an actually strong session as opposed to the weak sauce on Friday night although the latest flash services PMI was below expectations, with European shares pulling back. The risk around the triple whammy FOMC/ECB/BOJ meetings is keeping currency and interest rate markets on their toes with the USD still firming against the majors going into this week with the Australian dollar holding fast just above the 67 cent level going into tomorrow’s anticipated CPI print.
US bond markets saw a small lift across the yield curve as interest rate expectations increased, with the 10 year lifting nearly 4 pips to the 3.87% level while oil prices again rallied on European macro concerns with Brent crude advancing beyond the $82USD per barrel level. Gold tried to hold on but fell back towards the $1950USD per ounce level.
Looking at share markets in Asia from yesterday’s session with mainland Chinese share markets still in deflation mode with the Shanghai Composite finishing 0.2% lower at 3161 points while in Hong Kong the Hang Seng Index slumped more than 2% to close at 18614 points.
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