Market wrap: Volatility ruled - ANZ

Analysts at ANZ offered a market wrap.

Key Quotes:

"Volatility ruled, with firmer US data seeing the bond rout continue, while headlines from policy makers drove volatility in currency markets. Equities were biased lower with Europe underperforming. Oil continued to rally and gold resumed its decline.

The US treasury curve steepened [again] with 2 year up 3.5bps; 10 year up 8bps; and 30 year up 9bps. The US dollar was more mixed. ECB headlines saw EUR back above 1.0620 after dipping as low as 1.0585. EUR volatility is at the highest level since June with the Italian vote this weekend.

Brent added another 4.5%, making the two day gain 17%! The US ISM release led to the daily lows in AUD and NZD before both rebounded about 0.4-0.5%. European equities fell 0.5-1% with the DAX lagging. US equities were mixed, with energy (+2.0%) lifting the DJIA 0.2%, while the S&P 500 is currently up around 0.3%."