Not so inflationary after all? - ANZ

Analysts at ANZ noted the actions in markets overnight.

Key Quotes:

"US equities fell from all-time highs as oil prices dropped to November 2016 lows. The USD strengthened and global yields fell. European equities began inching higher before turning decisively lower by the middle of the trading session, with major bourses closing down 0.3-0.7%. US equities were being led lower by energy companies as oil declined. Health and utility stocks were the outperformers."

 Global yields fell, led by gilts, as BoE’s Mark Carney sounded warnings over the complications of Brexit negotiations. Gilt yields fell 3-5bps across the curve. US Treasury yields fell 1-5bps and the curve bull flattened."

"In commodities, oil futures fell 2% heading quickly towards a bear market as data showed that Libya is pumping the most crude it has in four years and the amount of oil stored in tankers was reported to reach a 2017 high this month."