Nothing of substance changed overnight but Wall Street rallied nonetheless as bond yields dropped back slightly due to some Fedspeak. The USD gained a little more ground with the Australian dollar still licking its wounds from yesterday’s RBA rate rise that has already been priced in.
US bond markets saw a slight drop across the yield curve with 10 year Treasuries falling back to the 4.5% level while oil prices dropped sharply on Chinese trade data concerns, with Brent crude snapping back to a one month low at the $81USD per barrel level. Gold continues to lose momentum as it fails to get back above the $2000USD per ounce level, dropping to the $1970 level this morning.
Looking at share markets in Asia from yesterday’s session where mainland Chinese share markets barely moved with the Shanghai Composite dead flat at 3057 points while in Hong Kong the Hang Seng Index took back its previous gains to lose 1.6% and close at 17670 points.