Daily Morning Call
From the Floor: Bond rout and Trump's plans drive markets
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Global financial market focus is glued to US president-elect Donald Trump as he starts assembling a cabinet and figuring out which parts of his stated policy plans are actually feasible. Worries about his spendthrift tendencies and their inflationary consequences are hammering bonds.
- The bond selloff continues and the US 10-yr yield is up by 86bps – Moltke-Leth
- Continued speculation on Trump's fiscal spending increase plans – Moltke-Leth
- Outlook to a December rate hike is at 84%, 2nd hike in March is 17% – Moltke-Leth
- China reports a 32% surge in Singles Day sales – Moltke-Leth
- Trump watching will be the focus this week as he starts filling cabinet seats – Hardy
- The USD has continued to rip higher – Hardy
- USD's aggressive extension sits uncomfortably with me – Hardy
- Juxtaposition of very weak bonds and strong equities is an oddity – Hardy
- Global bond rout is what's driving commodities too – Hansen
- The main casualty is precious metals – Hansen
- Oil's focus is on Opec as global supply continues to grow – Hansen
- Crude could be below $40 or above $50 depending on Nov. 30 outcome – Hansen
- Trump has signalled a softening on financial regulations – Boye
- Core yields continue to rise on the back of fiscal stimulus hopes – Boye
- Italian spread to Germany has widened to a 2-year high – Boye
- Treasury yields are approaching year highs across the curve – Boye
– MORE TO FOLLOW WITHIN THE HOUR –