Market wrap: hints of risk aversion - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Another quiet session overnight, with hints of risk aversion. The S&P500 is down 0.3%, Brent crude is down 0.6%, and the US dollar is higher. The IMF reduced its global growth forecast for 2016 from 3.2% to 3.1%, citing Brexit.

Interest rates: US 10yr treasury yields ranged between 1.54% and 1.57%, while 2yr yields rose from 0.66% to 0.70%. Market pricing of the Fed funds rate was little changed, implying a 20% chance of a rate hike in September, a 50% chance by December, and 100% by Nov 2017.

Currencies:  The US dollar index is up around 0.5% to a four-month high. EUR fell from 1.1075 to 1.1000. The safe-haven yen outperformed, USD/JPY ranging between 105.65 and 106.53. AUD initially fell extended the day’s decline, from 0.7520 to 0.7476, before recovering to 0.7510. NZD also slipped further, to 0.7010 (one-month low) before recovering to 0.7053. The GDT dairy auction resulted in a zero change overall, with WMP up 1.9%, but had little impact on the NZD. AUD/NZD retreated from a two-month high of 1.0772 to 1.0630."