Daily Market Briefing, Asia Pacific

• 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...

• Consolidation. Oil a little lower due to positive rhetoric. US equities tread water. USD a bit firmer. NZD a relative outperformer. AUD drifts a fraction lower.• Data pulse. Global PMIs out today. AU jobs report due Thursday. RBA Gov. Bullock acknowledges higher unemployment needed to ease inflation. Global Trends With news flow limited, financial market movements were modest overnight. Some positive vibes about the state of play in the Middle East caused oil prices to dip a little with brent crude slipping back to ~US$98.50/brl. President Trump indicated that US officials met with Iran’s delegation at the UN for...

• 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...