Market wrap: risk-averse mode - BBH

Analysts at Brown Brothers Harriman offered a market wrap.

Key Quotes:

"Global market sentiment: Most markets remained in risk-averse mode overnight. Equities, commodities and interest rates are lower, although so too is the “safe-haven” US dollar. The FOMC statement halted the USD slide.

Interest rates: US 10yr treasury yields fell for the second consecutive day, from 1.82% to 1.77% but retraced to 1.80% post-FOMC. 2yr yields fell from 0.83% to 0.80% and retraced to 0.82%. Fed fund futures are unchanged, continuing to imply greater than a 70% chance of a rate hike in December.

Currencies:  The US dollar index extended its multi-week slide. EUR rose from 1.1065 to 1.1123 – a three-week high. USD/JPY fell from 103.90 to 103.02. AUD rose from 0.7625 to 0.7678. NZD outperformed all following yesterday’s supportive news (NZ jobs data, dairy auction), extending its rally from 0.7200 to 0.7310. AUD/NZD fell sharply as a result, currently at 1.0490 (vs 1.0650 a day ago)."