Morning Report

Morning Report PDF (PDF 265KB)

Key themes:

• There was a risk on tone overnight as the flow of data was consistent with a softening in the US labour market. This is expected to be confirmed in tonight's all important jobs report, paving the way for a US rate cut in September.
• US equities increased to set a fresh record high, while European markets were also higher. The rally in US Treasuries continued overnight with yields ticking lower across the curve. Yields were also generally lower across European markets.
• The US dollar was broadly unchanged while the Aussie slipped 0.4% but remained above 0.6500. Movements elsewhere remained within recent ranges.
• Oil was lower on increasing concerns around oversupply, while iron ore futures increased to above US$104 a tonne.