Daily Market Briefing, Asia Pacific

• Quiet markets. Limited market moves overnight. US equities tread water, oil a bit higher, bond yields consolidate, & USD softer. AUD & NZD tick up.• Macro news. Latest US CPI data out tonight. Will it boost or lessen the odds of a late-October US Fed rate hike? Australian jobs report out tomorrow. Global Trends Market movements have been well contained over the past few days with the US holiday at the start of the week compounded by limited news flow overnight. US equities consolidated with the S&P500 treading water not that far from its record highs. Oil prices ticked...

• Bond yields. Bonds still in the driver’s seat. Worries about government debt widen spreads across Europe. EUR lower, USD higher. AUD still on backfoot.• Data pulse. US ISM in ‘expansionary’ territory. Eurozone CPI & US jobs report due tonight. More volatility in interest rate expectations & FX likely. Global Trends Gyrations in global bond markets continue to be front of mind for investors. Bond yields were volatile overnight and this flowed through to other asset classes. The combination of inflation pressures (brent crude rose ~5.2% to US$103/brl), central bank rate hike expectations, greater government bond supply due to high/rising...

• Shaky markets. Long end US bond yields continue to rise. US equities slip back again. USD firmer. AUD & NZD on backfoot. AUD at late-July levels.• Macro pulse. Expectations for a back-to-back RBA hike trimmed. But risk remains. US ISM & jobs report in focus over the next few days. Global Trends Underlying risk sentiment remains shaky with the upswing in long end bond yields still front of mind for investors. US equities failed to hold on to modest early session gains generated by downward revisions to the US PCE deflator (the US Fed’s preferred inflation gauge) and a...

• Jittery markets. Oil prices rose again, as did bond yields. Risk sentiment remains fragile. USD firmer. AUD & NZD still under pressure.• Global pulse. RBA expected to hike rates on Tuesday. China PMIs, US PCE & US jobs report on the radar next week. More market volatility likely. Global Trends Familiar themes continue to be in the market driver’s seat with the mix of elevated oil prices, inflation risks, and rising bond yields continuing to dampen the mood. Oil was volatile on the back of negative and positive US/Iran related news flow with skirmishes in the region offset by...

• Risk off. Inflation worries from rising oil prices & a potential US diesel export ban generated another jump in bond yields. USD firmer. AUD & NZD weaker.• Global forces. Australian jobs data due today. But global forces more in focus for the AUD. RBA likely to hike next week but growth slowdown is looming. Global Trends Global markets hit an air pocket overnight. A combination of factors we have been calling out such as disruptions to refined petroleum products, renewed inflation worries, rising bond yields, and the negative implications for global activity down the track generated a bout of...