Daily Updates

Wall Street saw renewed gains on Friday night, while US Treasury yields fell further, as a decline in US core producer price inflation and longer-run consumer inflation expectations confirmed that the US economy is back on the disinflation track. The assassination attempt of the former US President Donald Trump had hardly any impact on safe-haven assets this morning.

Wall Street’s performance was meagre yesterday, but US Treasury yields saw considerable declines as another encouraging US CPI report increased hopes for a September fed funds rate cut. The Dow Jones managed to close marginally up, but the S&P 500 and Nasdaq lost 0.9% and 2.2%, respectively, dragged down by drops in Nvidia and Tesla share prices.

US equities continued to set record highs overnight, with the S&P 500 posting its seventh consecutive daily increase, its longest winning streak since November last year.

The initial gains on Wall Street all but evaporated during the session last night, resulting in the S&P 500 and Nasdaq closing marginally higher, while the Dow Jones ended the trading day in red. US Treasury yields picked up slightly, with the increase being somewhat larger at the back end of the curve, while the US dollar appreciated.

US equities edged higher overnight ahead of some key events this week, with info tech again doing the heavy lifting. The mildly positive US session followed a mainly negative day for European shares, with CAC 40 in France the weakest of the major indices following the surprise French election results that have driven an increase in political uncertainty.

US equities climbed to fresh record highs on Friday, as the employment report signalled the US labour market is easing but not falling in a hole. US Treasury yields fell as the tepid payrolls growth and an increase in the unemployment rate fuelled expectations for a Fed interest rate cut as soon as September, with Aussie bond yields opening lower this morning.