Summertime market's mood soured by Trump - ANZ

Analysts at ANZ explained that markets initially traded with a positive tone overnight, though trading was thin, as is typical of this time of year.

Key Quotes:

"However, the mood was soured somewhat by Trump’s move to dissolve two business councils (before they could disband, seemingly), as it was seen as indicating the hurdles for Trump’s business agenda continue to grow. The reaction to the Fed minutes was also mixed.

Equity markets in Europe continued their move higher with the DAX and CAC 40 up 0.7% and the FTSE up 0.7%, but US equities lost steam in response to Trump’s decision and then the FOMC minutes, with the S&P 500 up just 0.1% at the time of writing. Bond markets rallied into the FOMC minutes and then held their highs (see below for Fed commentary).

The benchmark US 10-year Treasury yield is currently down 5bps. Oil was lower (WTI spot -1.5% at USD46.90/bbl at the time of writing) despite EIA reported crude oil inventories being down 8.94m barrels. Gold was up 0.8% to $1282/oz."