Market wrap: fairly stable waiting Jackson Hole - Westpac

Analysts at Westpac offered a market wrap.

Key Quotes:

"Global market sentiment: Markets were again fairly stable, awaiting the Yellen speech on Friday. Oil was notable, falling 2-3% on inventory gains, and perhaps influencing equities (along with the pharmaceutical sector), the S&P500 down 0.5%.

Interest rates: US 10yr treasury yields ranged sideways between 1.54% and 1.57% - they have been stuck in a range since mid0July, rarely straying outside 1.50%-1.60%. Market pricing of the Fed funds rate was stable, implying around a 30% chance of a rate hike in September, a 65% chance by December, and 100% by June 2017.

Currencies:  The US dollar index firmed slightly. EUR fell from 1.1300 to 1.1245 – a one-week low. USD/JPY rose from 100.10 to 100.60. AUD saw little net change on the day, fluctuating between 0.7590 and 0.7634 overnight. NZD initially rose from 0.7275 to 0.7335, consolidating to 0.7300. AUD/NZD extended a two-week old decline to 1.0413 – last seen on 11 July."