Market wrap: risk appetite increased following BoJ & Fed meetings - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Risk appetite increased further in the aftermath of the BoJ and Fed announcements. Equities in Asian, Europe and the US are higher (S&P500 + 0.6%), as are most commodities (oil +2%). US interest rates and the US dollar are slightly lower.

Interest rates: US 10yr treasury yields fell from 1.66% to 1.61% and are currently at 1.63%. The Fed’s cautious tone yesterday suggested that even if it does hike in December (which is priced in), it may be reluctant to do much beyond that.

Currencies:  The US dollar index is around 0.2% lower after clawing back some losses during the NY session. EUR rose from 1.1200 to 1.1257 but retraced in NY. USD/JPY ranged between 100.50 and 101.00, Japan on holiday. AUD extended its multi-day rally from 0.7640 to 0.7675 before retracing to 0.7640. NZD fell from 0.7350 to 0.7295, perhaps partly a lagged response to yesterday’s restated easing bias from the RBNZ. AUD/NZD’s week old rally accelerated to 1.0466 – a one-month high."