Headlines:

Markets:

  • JPY leads, AUD lags on the day
  • European equities lower; S&P 500 futures down 0.1%
  • US 10-year yields up 3.9 bps to 1.742%
  • Gold down 0.9% to $1,794.47
  • WTI up 1.9% to $79.31
  • Bitcoin down 1.7% to $42,890

The hawkish Fed tone after the FOMC meeting minutes release yesterday continues to reverberate.

Bond yields are higher, stocks are weaker, and the dollar is holding up - keeping firmer mostly against the commodity currencies.

There were hints of a more risk-off mood earlier in the day but that has abated a little but there are still some cautious signs. European indices are down over 1% on the day, catching up to Wall Street losses yesterday. Meanwhile, US futures are mixed with tech leading the downside. S&P 500 futures are down 0.1%, Nasdaq futures down 0.7%, but Dow futures are up 0.2%.

Elsewhere, the selloff in Treasuries is continuing with 10-year yields approaching key resistance around 1.75% and 30-year yields climbing to its highest since October last year above 2.15%.

In FX, the dollar is advancing against the commodity currencies though gains have eased a touch. AUD/USD was down to a low of 0.7145 but is now holding around 0.7170, still down 0.7% though. Meanwhile, USD/JPY is marked lower amid the uneasiness in risk sentiment as the pair slips from 115.90 to 115.70 earlier.

In the commodities space, gold is marked down by almost 1% to test its 100-day moving average at $1,792.60. This comes amid the backdrop of higher yields. Elsewhere, oil was initially lower on the day amid the risk retreat but has rebounded strongly to be up by almost 2% above $79.