Market wrap: a slight risk averse posture - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Markets were quiet with the US on holiday, but retained a slightly risk averse posture in response to the weekend’s North Korean missile tests. Defensive currencies and gold rose, while bond yields and equities fell slightly.

Interest rates: US 10yr yields implied by futures (the physical market was closed) hovered around 2.14%, 3bp below the Friday close of 2.17%. Fed fund futures yields continued to price the chance of a December rate hike at around 40%.

Currencies: The US dollar index is down 0.2% on the day. EUR traded a higher 1.1880-1.1922 range. The safe-haven Swiss franc outperformed, USD/CHJF falling from 0.9610 to 0.9552. USD/JPY maintained a lower range of 109.40-109.80. AUD was the worst performer, slipping from 0.7970 to 0.7943. NZD ranged between 0.7157-0.7183. AUD/NZD slipped from 1.1110 to 1.1075.

Economic Wrap

Eurozone investor confidence (Sentix) rose from 27.7 to 28.2 (vs 27.0 expected) – remaining close to a 10-year high. Confidence in the current situation slipped but confidence in the future rose."