Market wrap: Global equites were lower overnight - ANZ
Analysts at ANZ explained that global equites were lower overnight with the USD declining and European yields sharply higher.
"Oil and gold rose. Global equities were under pressure through the European session with declines ranging from 0.6-1.5% across major bourses. ECB’s Benoit Coeure said that robust growth in the EU is welcomed, but that “we need to build up new firepower” for the next crisis, implying the punch bowl may not be there as long as people expect.
The lift in China’s inflation indicators may have also led the market to reconsider the global inflation outlook. European yields bear steepened with the front end up 1-2bps and 10 year up 5-7bps. US equites opened in the red and took another leg lower after headlines suggested the corporate tax cut may be delayed to 2019. The junk bond market also took a hit. The 2-year US treasury yield fell 2bps on the news and the USD was sold. JPY, EUR and CHF outperformed in the G10 with AUD and NZD down 0.1%. Oil rose close to 1% on news that Saudi Arabia will cut exports next month. Gold lifted to USD1285/oz, up 0.4%."