Market wrap: US dollar, US bond yields and equities rose - Westpac

Analysts at Westpac share daily market wrap with the key quotes found below:

"Global market sentiment: The US dollar, US bond yields and equities rose amid a calmer environment for risky assets. The S&P500 is up 1.0%. Hurricane Irma was not as damaging as feared, and North Korea did not escalate."

"Interest rates: US 10yr yields rose from 2.08% to 2.13%, 2yr yields from 1.28% to 1.32%. Fed fund futures yields also firmed, now pricing the chance of a December rate hike at 41% (from 27%)."

"Currencies: The US dollar index is up 0.6% on the day. EUR fell from 1.2020 to 1.1957. USD/JPY rose from 108.50 to 109.39 – the defensive yen the worst performer. AUD ground slightly lower, from 0.8060 to 0.8019. NZD fluctuated between 0.7240 and 0.7293. AUD/NZD remained confined to a 1.1040-1.1140 range."

Event Risk

"Australia: Aug NAB business survey conditions were last at 15, having maintained an elevated level through 2017. However, results vary by industry, with the retail and mining sectors lagging behind."

"UK: Aug CPI is expected to rise 0.5%, which would bring annual inflation to 2.8% from 2.6%. The earlier fall in sterling is set to keep annual inflation high for some time."

"US: Aug NFIB small business optimism is expected to be broadly unchanged at 105.2, a still positive result. Aug NY Fed survey of expectations covers inflation, earnings and the labour market."