Market watch APAC
US equity markets posted some very large moves overnight as fund managers digested the latest stronger-than-expected US retail sales report.
Goldman Sachs are now calling for a rate cut from the FOMC at the July meeting, but overall expectations of rate cuts remain for the meeting in September.
The standout overnight was the large moves in particular indices. The Dow rallied 1.85% while the more broad-based Russell 2000 surged 3.5% as fund managers switched out of tech stocks and into small caps.
The Russell 2000 has added 12% in the past 5 sessions, an amazing result never before seen in US equity markets, although it is still only up 12% year to date, while thew S+P 500 has gained 19%.
The US dollar index moved higher overnight based on the strong retail sales report. However, much of this was given back later in the session.
The AUD/USD slid further overnight, from around 0.6750 towards 0.6715 before settling into a .6730-40 range.
