Market wrap: markets contained within recent ranges - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Markets were mostly contained inside recent ranges. The S&P500 is down 0.4%, partly retracing the previous day’s Deutsche Bank inspired gains. US interest rates are slightly higher following US manufacturing data.

Interest rates: US 10yr treasury yields rose from 1.59% to 1.63%, most of the rise occurring after the US manufacturing report (ISM). 2yr yields rose from 0.77% to 0.79%.

Fed dove Dudley noted the slow pace of expansion and suggested the Fed should be cautious in removing accommodation, not necessarily inconsistent with market pricing and thus eliciting little reaction. In contrast, hawk Mester said the case for a November hike was compelling.

Currencies:  The US dollar index is around 0.2% higher, lifted by the ISM report. EUR slipped from 1.1242 to 1.1205. USD/JPY rose from 101.25 to 101.65. AUD rose from 0.7645 to 0.7681, performing well in the wake of the Chinese renminbi’s admission to the IMF’s SDR basket over the weekend. NZD fluctuated between 0.7255 and 0.7290. AUD/NZD rose from 1.0520 to 1.0570."