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JPY

Selloff intensifies

A global rout in risky assets looks set to extend into a third day as investors turn more sceptical on artificial intelligence spending and pull back on expectations for a rate cut at the Federal Reserve’s December meeting. North American equity futures—particularly on technology-focused indices—are pointing to renewed selling pressure at this morning’s open, Treasury yields are modestly higher across the curve, and the dollar is trading higher against most of its counterparts as investors seek liquidity. The Canadian dollar and euro are outperforming on the crosses while the Mexican peso and Australian dollar drop relative to the safe-haven Japanese...

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US Government Reboot

• Market wobbles. US shutdown ends. Market jitters return. US equities fall while yields rise. USD softer versus majors like EUR & JPY. AUD slips back.• AU jobs. Employment conditions rebound with unemployment declining. Odds RBA doesn’t cut rates again have risen. China data batch due today. Global Trends There were a few renewed wobbles in risk sentiment overnight with US assets at the forefront of the moves. There was a small sense of the ‘sell America’ theme, which dominated market action a few months ago, returning. US equities lost ground with the tech-sector leading the way (NASDAQ -2.3%, S&P500...

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Optimism reigns across financial markets as shutdown nears end

Financial markets are back in risk-on mode as US lawmakers return to Washington for a vote that could end a 43-day shutdown that paused federal government paycheques, delayed vital food aid for millions of Americans, and disrupted global airline travel. House Republicans are expected to support Monday’s spending package in today’s session, clearing the way for a reopening of the government by Friday. The dollar is grinding higher against a basket of its most-traded counterparts, risk-sensitive currencies like the Canadian and Australian dollars are on the march against the safe-haven Japanese yen, benchmark two- and ten-year Treasury yields are slipping...

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Shutdown hopes bolster risk appetite

The dollar is retreating and Treasury yields are slipping as the longest shutdown in American history shows signs of coming to an end. Trading volumes look light ahead of tomorrow’s holiday, but measures of risk appetite are improving and investors are moving out of safe havens like the Japanese yen and Swiss franc into economically-sensitive units like the Aussie, Canadian dollar, and Mexican peso after a group of Democrats crossed party lines to approve a bill that would provide funding through the end of January. Uncertainties still exist: a final vote in the Senate is needed to pass the measure...

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US shutdown impacts showing

• Intra-day swings. More headline driven gyrations on Friday. US equities swung around. USD index a bit softer. NZD on backfoot. AUD a little higher.• US shutdown. Current US gov. shutdown longest in history. Macro impacts starting to show. Pressure on lawmakers to reach a deal is growing.• Event Radar. In Australia the monthly jobs report is due (Thurs). The China data batch is out (Fri). Several US Fed members also set to speak this week. Global Trends Intra-session market gyrations continued at the end of last week with US Government Shutdown newsflow in the driver’s seat. Thanks to a...

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