Comments from the US Federal Reserve chairman that interest rates were far from neutral sent the US dollar soaring and sparked a bond market sell-off overnight. Commodities came under pressure, although major share market indices registered modest gains. The surge and subsequent reactions will likely swamp Asia Pacific markets today.

Both the New Zealand and Australian dollars are trading at lows not seen since February 2016. Lower regional currencies may support share trading today. Futures markets are pointing to stock gains across the region, although then week long holiday in China may once again see subdued volumes.

Bonds are likely to feature today. Steeper yield curves and higher long rates may give investors pause. In contrast, oil prices hit new four highs during North American trading, despite the year’s strongest build in US inventories. Support for energy stocks may offset pressure on interest rate sensitive sectors.

CMC Markets Singapore may provide or make available research analysis or reports prepared or issued by entities within the CMC Markets group of companies, located and regulated under the laws in a foreign jurisdictions, in accordance with regulation 32C of the Financial Advisers Regulations. Where such information is issued or promulgated to a person who is not an accredited investor, expert investor or institutional investor, CMC Markets Singapore accepts legal responsibility for the contents of the analysis or report, to the extent required by law. Recipients of such information who are resident in Singapore may contact CMC Markets Singapore on 1800 559 6000 for any matters arising from or in connection with the information.