This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Stocks and bonds trading at historically high valuations is seeing a steady push of capital into the higher risk premium ends of the market.
After surging higher off the comments from the Fed’s Stanley Fischer, the DXY US dollar rally entirely reversed overnight pulling back to almost exactly where it started the session. And a similar pattern was seen in most of the major USD crosses. The Aussie dollar edged up slightly higher by 0.1% to US$0.7632 after dropping to US$0.7584 at one point in overnight trade. US treasuries had even more conviction, totally discounting the threat of an imminent rate rise and continuing to rally with 30-year yields dropping by 4.9 basis points and the TLT iShares 20+ Year ETF gained 0.8%.