Headlines:
Markets:
- AUD advances, USD lags during the day
- European stocks rise; S&P 500 futures up 0.8%
- The yield on the 10-year US Treasury note fell 0.9 basis points to 3.771%.
- Gold rises 0.8% to $2,678.03
- West Texas Intermediate crude fell 2.8% to $67.77.
- Bitcoin price rises 1.3% to $64,330
China continues to dominate the spotlight so far this week. The Politburo came out today to extend its commitment to all the measures taken this week, which has sent Chinese assets soaring. The Shanghai Composite closed above 3,000 for the first time since June, up 3.6%. Meanwhile, the CSI 300 closed up 4.2% and is already up more than 10% this week.
This has helped push currencies like the Australian dollar higher, as a more positive risk sentiment flows across broader markets.
The AUD/USD pair has risen from 0.6840 levels to 0.6880 now, up 0.9% on the day. As the session progressed, the weaker dollar also started to spread across other major currencies.
EUR/USD fell on a report that the European Central Bank is considering its October meeting as a direct one, with the pair falling to 1.1127 before trading 0.2% higher now at 1.1155. GBP/USD was flat, up 0.4% at 1.3380. USD/JPY tested the 145.00 level in early Asian trade but is now down 0.4% at 144.23 on the day.
There was also the policy decision by the Swiss National Bank, where the Swiss National Bank decided to cut interest rates by 25 basis points. This was a coin flip in terms of market pricing, and the decision helped to consolidate the slight gains in the franc, as traders are still looking for around a 25 basis point rate cut by the SNB by June next year. In that sense, pricing expectations have not changed much.
However, both USD/CHF and EUR/CHF fell, with the latter down 0.2% at 0.9455 currently, as the ECB outperformed the SNB even on the day of its decision.
In stocks, the situation is even more pronounced, with investors taking comfort from the vote of confidence in Chinese markets.
S&P 500 futures are now up 0.8% while all European indices are up more than 1% on the day.
In commodities, gold continues to rise and is trading at new record levels now approaching $2,680. The train continues its march there.