Markets settling with a drop in the VIX - ANZ

Analysts at ANZ explained that the market concerns around European banks settled a little in the NY afternoon as equities rallied, gold was sold, the USD was mixed and the treasury curve flattened.

Key Quotes:

"European equities were generally lower, with energy stocks bearing the brunt. US equities rallied in the afternoon with S&P 500 and DJIA up 0.7%. The VIX fell 11.4% to 17.7. The US treasury curve is flattening with 30Y down about 4bps and 2Y flat. In Europe, moves were mixed with Italian yields rising 0.2-2.4bps, while German yields dropped 2-2.5bps.

The BoE began purchasing corporate bonds today under their QE program.

Commodities were mixed with energy and metals selling off against a continued rally in agriculture. NZD, AUD and GBP all rallied. Following the first US Presidential candidate debate last night, MXN appreciated 2.1% today, casting aside some of its Trump “shadow”."