Market wrap: risk appetite rose on Deutsche Bank news - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Risk appetite rose, partly in response to reports that Deutsche Bank’s US fine may be slashed. The S&P500 closed up 0.8% and US interest rates rose.

Interest rates: US 10yr treasury yields rose from 1.54% to 1.62%, but slipped near the close to 1.59%. 2yr yields rose from 0.72% to 0.76%. US economic data was mixed: personal spending disappointing but consumer sentiment revised higher, the Atlanta Fed’s model forecast for Q3 GDP revised lower from 2.8% to 2.4% (annualised) in their wake. The Fed’s Kaplan, though, continued to expect stronger growth during the second half of 2016.

Currencies:  The US dollar index closed around 0.1% lower. EUR initially fell from 1.1220 to 1.1153 but rebounded to 1.1251 following the Deutsche Bank reports. USD/JPY ranged between 100.75 and 101.45, closing at 101.35. AUD was boosted by the positive global tone, from 0.7590 to 0.7672. NZD similarly rose from 0.7238 to 0.7298. AUD/NZD rose from 1.0473 to 1.0536."