Market wrap: US session retraces WTI's higher price effect - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Higher oil prices coincided with a rise in commodity currencies, although these were mostly retraced during the NY session.

WTI crude oil is up 1.9% following Saudi Arabia and Russia’s commitment to extend production cuts. The S&P500 is up 0.4% having earlier made a record high, and US treasury yields are slightly higher.

Interest rates: US 10yr treasury yields benefitted from the risk-seeking mood, rising from 2.32% to 2.35%, while 2yr yields rose from 2.29% to 2.30%. Fed fund futures yields also firmed, now pricing a June rate hike as an 85% chance (from around 80% the previous day).

Currencies: The US dollar index firmed during the NY session but is 0.3% lower on the day. EUR rose from 1.0930 to 1.0990. The safe-haven yen was the worst performer, USD/JPY up from 113.20 to 113.85 over the past 224 hours. AUD initially rose from 0.7400 to 0.7446 before retracing to 0.7412. NZD rose from 0.6875 to 0.6918 before fully retracing. AUD/NZD rose from 1.0755 to 1.0785, retracing all of the post-NZ retail sales data loss."