Weekly Performance
Dow +0.11% S&P +0.81% Nasdaq +1.61% Russell +2.59% Brazil -2.02% EuroStoxx -0.30% FTSE +0.67% CAC +0.34% Dax -0.03% Ibex -0.19% MIB -3.25% SMI +0.31% Nikkei +3.41% Hang Seng -0.83% CSI +0.01% Shanghai -0.10%
The post US election money flows largely extended into a second week, but moderation was seen across various sectors and asset classes. The Trump reflation trade continued to push interest rates higher and was aided by economic data and Federal Reserve commentary that essentially clinched a rate hike is coming at next month's monetary policy meeting. Outside of the chatter surrounding the President-elect's rumored cabinet picks, the question markets shifted most of their focus onto was just how many more hikes could follow in 2017. Against that backdrop the US benchmark 10-year yield rose above 2.3% for the first time since ealry 2015. The spread over the comparable German 10-year yield widened to levels not seen since the late 1980's. The US Dollar continued to surge, particularly against emerging market currencies, including another 1% move against the Chinese Yuan this week. Currency traders prepared for seasonal FX liquidity to ebb which could allow for further aggressive moves. The Euro is within striking distance of the post financial crisis low of 1.0460 and after that potentially parity. Japan's Nikkei touched a fresh 10-month high powered by the USD/JPY which rose to a level not seen since June. WTI crude futures bounced 6% off a Monday low to surpass $46 as producers met in Doha on Friday and by most accounts remained adamant an output deal will be reached by the November 30th meeting.
Macro :
Keep an eye on :
- FP FP : Petrobras in negotiations with Total to sell stakes in oil fields, two power-plants