Market wrap: iron ore up 2.6% - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

Global market sentiment: During a quiet night newswise, the US dollar and bond yields slipped further. Among commodities, oil fell but metals rose, iron ore up 2.6%.

Interest rates: US 10yr treasury yields slipped from 2.20% to 2.17%, 2yr yields from 1.32% to 1.30%. Fed fund futures yields continued to price the chance of a December rate hike at around 40%.

Currencies: The US dollar index is down 0.3% on the day. Outperformer EUR rose from 1.1730 to 1.1828. USD/JPY fell from 109.25 to 108.64. AUD rose from 0.7910 to 0.7951. NZD rose from 0.7310 to 0.7337. AUD/NZD ranged sideways between 1.0820 and 1.0850.

Economic Wrap

The Chicago Fed’s National Activity Index fell from 0.16 to -0.01 (+0.01 expected), indicating sub-trend growth.

Event Risk

Euro Area: Aug ZEW survey of expectations was last at 35.6 indicating that a significant share of investors expect an improving economy. The net balance has trended up from a recent bottom of -14.7 in July 2016.

US: Trump is scheduled to outline the US strategy for Afghanistan in a TV address (Monday 9 PM ET).