MArket Wrap: equities make fresh record highs - Westpac

Analysts at Westpac offer a market wrap.

Key Quotes:

Global market sentiment: US equity indices made fresh record highs overnight, the S&P500 currently up 0.5% amid company earnings surprises. US interest rates and the US dollar also pushed higher.

Interest rates: US 10yr treasury yields rose from 1.55% to 1.59%, while 2yr yields rose from 0.69% to 0.72%. Market pricing of the Fed funds rate firmed, implying a 30% chance of a rate hike in September, a 55% chance by December, and 100% by Sep 2017.

Currencies:  The US dollar index rose to a four-month high but is currently back to unchanged. EUR rose from 1.0985 to 1.1030. USD/JPY rose from 106.00 to 106.99 – a one-month high. AUD slipped from 0.7508 to 0.7462. NZD similarly slipped from 0.7067 to 0.7018. AUD/NZD bounced off 1.0610 to 1.0660.