Market wrap: Trump's team rally up the rally - Westpac

Analysts at Westpac offered their market wrap.

Key Quotes:

"Market Wrap

Global market sentiment: US equities, interest rates and dollar all rose overnight. A Politico report that Trump’s team was making progress on tax reform attracted market attention.

Interest rates: US 10yr treasury yields rose from 2.19% to 2.22%, 2yr yields from 1.31% to 1.32%. Meanwhile, Fed fund futures yields repriced the chance of a December rate hike at around 36% (from 40%).

Currencies: The US dollar index is up 0.5% on the day. EUR fell from 1.1820 to 1.1745. USD/JPY rose from 109.20 to 109.55. AUD fell from 0.7945 to 0.7898. Underperformer NZD fell from 0.7325 to 0.7273. AUD/NZD rose from 1.0830 to 1.0868.

Economic Wrap

US Richmond Fed manufacturing activity remained unchanged at an elevated 14 (vs 10 expected), a solid report reflecting a decent growth trend. FHFA house prices rose 0.1% in June (vs 0.5% expected).

German ZEW investor confidence fell from 17.5 to 10, a third consecutive decline which flags some slowdown in growth ahead and gives the ECB more ammo to refrain from any imminent QE tapering signal."