Global markets outlook - ANZ

Analysts at ANZ offered a market wrap of overnight sessions.

Key Quotes:

"‘Trump Trades’ saw some retracement on light trading overnight. Equities slipped, the USD declined, treasuries firmed, and gold rebounded. Oil continued to sway with OPEC headlines. European equities were hit harder than North American, with Euro Stoxx down 1%, FTSE 100 off 0.6%, DAX down 1.1%, and CAC 40 0.9% lower. Italian banks led losses in Europe with jitters ahead of the referendum."

"The Financial Times reported that eight Italian banks may fail due to an inability to refinance if the Italian PM loses the referendum this weekend, citing unnamed officials. The S&P and DJIA were off 0.2-0.3%."

"The USD was on the back foot. GBP was the only G10 currency to have a significant fall (0.6%), likely driven by comments from the BoE and Draghi. Treasury prices were firmer with the belly of the curve outperforming. In Europe, moves were similar, with Germany outperforming. Oil continued to gyrate due to headlines surrounding OPEC, and is currently up about 1.8%. Expect volatility to persist with the meeting in Vienna starting Wednesday."