The latest FOMC minutes rattled risk markets overnight as the Federal Reserve flagged the fight against inflation was far from over. The USD soared against everything undollar while Wall Street sold off significantly, which is likely to be a big drag on Asian equities here on the open this morning. The Australian dollar was pushed further lower below the 65 cent handle as traders awaits today’s latest unemployment numbers.
US bond markets again saw a lift across the yield curve with the 10 year Treasury pushing above the 4.25% level while oil prices pulled back sharply with Brent crude back down to the $83USD per barrel level. Gold dipped below the $1900USD per ounce level and stayed there with another big selloff in line with the other undollars.
Looking at share markets in Asia from yesterday’s session with mainland Chinese share markets are continuing their selloff from last week with the Shanghai Composite down over 0.7% at 3150 points while in Hong Kong the Hang Seng Index has fallen back 1.3% to 18329 points.
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