Decent US data helped pacify risk off profile - ANZ

A choppy, risk-off environment was seen in the last Asian and European sessions, though decent US data turned it around later, notes ANZ Research Team. The bank provides a summary of Wednesday's price action, which can be found below.

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Overnight saw another choppy, risk-off environment through the Asian and European sessions, though decent US data turned it around later. European bourses were led lower by the Euro Stoxx, declining 1.8%; FTSE lost 1.3%; and DAX shed 1.7%.

In the US, the S&P 500 fell as much as 0.7% before climbing back into the black in the afternoon as decent data pushed up consumer discretionary stocks. VIX was up 9% before declining. Currency markets have been particularly volatile, with GBP trading in a 1.28-1.3030 range.

AUD outperformed, breaking back above 0.75, but NZD did not follow suit (-0.3%), which has seen NZD/AUD fall steadily below 0.95. JPY traded as low as 100.2, before rebounding to 101.4. US Treasuries are giving back recent gains, with yields bear flattening.

Oil is also staging a rebound, with WTI up 1.4% after falling as much as 2%. Gold remains bid, up 0.4%