United States yields rise before Yellen speech, two-year supply

Posted September 27, 2017

The index is down by 9.7% since US President Donald Trump's inauguration.

In Europe, markets edged higher on merger news and also on hopes of monetary policy tightening in the U.S.

"An analysis of the pattern of wage growth at the US state level also suggests that subdued growth for the country as a whole probably reflects sluggish productivity or some other factor common to all states, because cross-state differences in wage growth are about what one would expect given cross-state differences in unemployment rates".

The ICE U.S. Dollar Index was up 0.3% on Tuesday to 92.917, putting some pressure on commodities. There has been a focus around the response of American football players towards the USA national anthem and more importantly the tensions between North Korea.

The Euro-to-Dollar rate pared a 0.68% loss overhanging from the London session to trade just 0.52% down at 1.1794.

The yen fell 0.6 percent to 112.92 per dollar, close to an 11-week low, and sterling lost 0.3 percent to $1.3420 against the resurgent greenback, picking up from as low as $1.3363.

Inflation, a sustained increase in the price of goods and services, has remained consistently below the Fed's target rate of 2 percent.

New Zealand's benchmark S&P/NZX 50 index rose 26.60 points or 0.34 percent to 7.913.78, gaining for the fourth straight session as investors shrugged off potential uncertainty on the domestic front.

-The euro sank 0.5 percent to $1.1792, the weakest in five weeks.

Uncertainty over the direction of Brexit negotiations - which recommenced this week in Brussels - also continues to weigh on the pound, which has fallen more than 10 percent against the dollar since before Britain's June 2016 referendum on European Union membership.

-The yield on 10-year Treasuries added one basis point to 2.2322 percent.

Meanwhile, palladium fell 0.1 percent to $913.40 per ounce.

Oil futures finished lower on Tuesday, 26 September 2017 on expectations US data will show a fourth consecutive weekly rise in domestic crude inventories. The industrial metal rose 1.1 percent to $6,485 a tonne.

-Japan's Topix index closed flat after trading in a narrow range. On the mainland, the Shanghai Composite inched higher by 0.06% and the Shenzhen Composite advanced 0.30%.

Risk appetite has returned to the marketplace at mid-week as world stock markets were mostly firmer overnight.

Grainger pushed higher after the residential landlord said it delivered a strong second-half trading performance, while Inmarsat gained as it announced it will supply AirAsia Group with its next-generation GX Aviation in-flight broadband to more than 120 Airbus aircraft.