There was only modest movement among the major asset classes. The S&P500 is currently up 0.3%, and bond yields are little changed, although the US dollar did rise further to a five-month high.

A risk-averse mood prevailed, partly caused by fresh lockdowns in Europe during the past week. The S&P500 is down 0.9%, bond yields are slightly lower, oil fell to a one-month low, and risk-sensitive currencies fell.

US equities rose as bond yields fell, the S&P500 currently up 1.0%. The rise in equities seemed to help risk-sensitive currencies.

US yields rose after the Fed announced an end to favourable treatment for bank holders of treasuries. That weighed on US equities, the S&P500 closing down 0.1%. Risk-sensitive currencies are slightly lower.

US yields rose in the wake of yesterday’s FOMC meeting, as markets bet on inflation rising. That unnerved equities, the S&P500 currently down 1.0%. The risk averse mood and the higher yields were both US dollar supportive.

Sentiment reversed after the Federal Reserve’s decision this morning did not contain the hawkish signals markets had hoped for. Equities flipped from moderate losses to moderate gains (S&P500 currently + 0.3%), and short-end bond yields and the US dollar fell.

Markets were quiet ahead of tomorrow’s FOMC decision. The S&P500 is currently down 0.1%, and bond yields and currencies are little changed.

There was only minor movements in the main asset classes. US equities remained elevated, the S&P500 currently up 0.1%. Bond yields fell slightly, and the US dollar rose slightly.

US equities rose slightly further, the S&P500 closing up 0.1% and at a record (closing) high. Tech stocks underperformed, though, the NASDAQ 100 down 0.9%, probably affected by the continuing rise in bond yields. The USD outperformed all the majors except the CAD. US economic data, while second-tier, was stronger than expected.

US equities continued to rise, the S&P500 currently up 1.4% and at a record high. Bond yields probed lower, and the defensive US dollar fell. The ECB signalled a near-term increase in bond purchases.