Global financial markets rebounded yesterday after Monday’s sharp decline with stock indices gaining back some of the lost ground and risk trades in general pushing back into recent ranges.
Fed officials advised that the weaker than expected jobs numbers on Friday, one of the catalysts for the recent sell off, would not necessarily lead to a recession but confirmed that rate cuts will come. The market is now pricing in a 68% chance of a 50-basis point cut by the Fed in September.
US treasury yields also pushed back higher having hit 1-year lows the day before whilst the dollar gained some ground on the index.
The early focus in the Asian trading session will be on New Zealand where key employment data is due out and there is little of note due over the next couple of sessions until we have the Ivey PMI numbers out in Canada and the 10-year bond auction in the US later in the day.
| Market | Change | Close |
| Dow | +0.74% | 38,988 |
| S&P | +1.00% | 5,237 |
| Nasdaq | +1.03% | 16,366 |
| USD | +0.14% | 102.93 |
| US Treasury – 2 Year | +10 bps | 3.983% |
| US Treasury – 10 Year | +10.5 bps | 3.888% |
| Oil – Brent | +0.2% | $76.48 |
| Oil – WTI | +0.4% | $73.20 |
| Gold | -0.6% | $2,398 |
Today’s Events (AEST):
Asian Session
- 8.45 am – New Zealand – Employment Data
US Session
- 12.00 am – Canada – Ivey PMI Data
- 3.01 am – US 10-Year Bond Auction Data
