Daily Market Briefing, Asia Pacific

• Fed hike. A ‘hawkish’ US Fed rate rise. Forecasts point to more ‘tightening’ later this year. US equities dip. USD firmer. AUD & NZD remain on the backfoot.• Macro pulse. US retail sales stronger than expected. US Fed has more work to do. BoE tonight & BoJ tomorrow. RBA predicted to hike rates later this month. Global Trends Economic events in the US were in focus overnight with a strong retail sales report compounded by a ‘hawkish’ interest rate hike by the Federal Reserve. US retail sales grew 1.2% in August, a positive signal about broader macro momentum given...

• Market wobbles. Higher oil prices & rising yields dampen sentiment. Equities dip, USD firmer. AUD & NZD lose ground. AUD underperforms on crosses.• Data pulse. ECB raised rates overnight. US CPI due tonight. Markets pricing in a ~70% chance US Fed hikes next week. US CPI could generate volatility. Global Trends It was a case of rinse and repeat across markets overnight with another jump in oil and move higher in bond yields darkening the mood. In terms of oil a greater ‘supply risk premium’ continues to be incorporated with the renewed Middle East hostilities and heightened chances of...

• Shaky sentiment. Another rise in oil & long end bond yields dampened the mood. Equities a bit lower. NZD underperformed while AUD held up.• Macro trends. ECB expected to hike tonight. US producer prices due. RBA rhetoric has been ‘hawkish’. Late-September RBA hike now ~75% priced in. Global Trends A few jitters have returned to markets with higher oil prices, on the back of the intensification of attacks on shipping and energy infrastructure in the Middle East, and another move up in bond yields dampening the mood. Brent crude has risen above US$101/brl to be at the top end...

• Market swings. US holiday overnight. US/Iran tensions supporting oil. JPY rebound weighing on USD & indirectly boosting currencies like the AUD.• Macro pulse. RBA’s Hunter & Hauser speak today. US CPI this week. Markets factoring in ~60% chance Fed hikes next week & RBA moves this month. Global Trends With the US enjoying a long weekend holiday most financial markets were relatively quiet at the start of the new week. Tit-for-tat strikes between the US and Iran continue to dampen sentiment a little and are adding a risk premium to oil with brent crude now north of US$97/brl, ~21%...