Markets remained upbeat overnight, amid mostly dovish Fedspeak. The S&P500 is up 0.5% and near the all-time high, while the defensive US dollar weakened for a second consecutive day. Bond yields fell slightly.

Markets were more upbeat overnight, after a three-day long risk-averse reaction to last week’s hawkish Fed shift. The S&P500 is up 1.4%, bond yields are higher, and the US dollar is lower.

Markets continued to price in Fed tightening by pushing short-maturity interest rates higher and long-maturities lower. Equities fell (S&P500 -1.3%) and the US dollar rose, with the AUD and NZD performing poorly.

The US dollar extended its positive reaction to the previous day’s hawkish Fed shift. Longer maturity bond yields, though, completely retraced. Equities are little changed.

The Federal Reserve’s FOMC meeting statement surprised markets by showing a majority of members expected rate hikes by 2023. US equities fell (S&P500 currently -0.5%), while bond yields and the US dollar jumped, causing a sharp fall in the AUD and NZD.

A mixed bag of US economic data kept equities and currencies in a holding pattern, awaiting tomorrow’s Fed announcement. Bond yields rose slightly following the strong US PPI inflation result.

US equities stalled near record highs and bond yields rose ahead of Wednesday’s Fed policy decision. Currencies were contained.

US equities remained elevated, the S&P500 up 0.2% to a record closing high. However, risk sensitive currencies fell, while bond yields consolidated near recent lows. There was no major market-moving news.

US equities rose to fresh record highs following inflation data which was consistent with the Fed’s “transitory” judgement. The S&P500 is up 0.5%, bond yields are lower, and risk-sensitive currencies are higher. The ECB maintained its policy settings.

Equities remained stalled near all-time highs, looking ahead to key events tonight - the US inflation report and the ECB meeting. The S&P500 is unchanged, while bond yields and currencies experienced some intraday volatility, the AUD and NZD ending slightly lower.