Market Watch APAC
US stocks fell for a second straight session, giving back all the gains made from the last two weeks. The S+P 500 slipped .8%, the NASDAQ eased .7% but the Russell 2000 once again bucked the trend, adding .17%.
Selling was more evenly spread across markets than the previous two sessions but remained focused on tech stocks, confirming the recent commentary that institutional investors are shifting funds into the broader market on the belief that future rate cuts will benefit the wider economy.
US treasury yields rose across the curve, confirming the view that two Fed rate cuts are priced into markets for 2024, with a 93% chance of the cycle beginning in September.
Locally, employment increased in June beating expectations leading to slightly increased odds an RBA rate hike this year. Markets now have a 40% chance of a hike priced in with no cuts in sight until mid-2025.
The US dollar bounced higher causing the AUD to slip for a fourth straight session, easing from .6750 to sub .6700.
In Europe, the ECB kept rates on hold as expected.
