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In the Markets – Week-Ending November 11th

by Peter J. Creedon

Newsletter: In the Markets – Week-Ending November 11th
Crystal Brook Advisors
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United States: This week, Donald J. Trump, the New York billionaire, was elected President of the United States. This surprising election developed a surge of reactions across the country from both liberals and conservatives. Equity markets reacted positively to the result, as the Dow reached a record high the day following the election, despite negative protests that have erupted across the country. 

Europe: In Europe, the French presidential election is less than six months away, shockwaves from Donald Trump’s victory in the US presidential election are already striking Paris. (1) Donald Trump’s US election victory poses risks for the relationship between the European Union and the United States, the EU commission president has warned. (2) Germany’s coalition government has reached an agreement on a climate change action plan which involves reducing greenhouse gas emissions by 80 to 95% by 2050, a spokesperson said on Friday. (2) Google has attacked an EU crackdown on its Android software, claiming that efforts to impede the mobile operating system could harm Google’s ability to compete with Apple and threaten its ability to give Android away for free. (3)

Asia: Asia: Thursday’s rally followed rises in Europe and the US, as the market meltdown many had anticipated failed to materialize. Japan’s Nikkei 225 index soared 6.7%, more than recovering losses from the previous session. Hong Kong’s Hang Seng index added 2.1% with Australia’s ASX index up 3.3%. (4) Asian nations are preparing for a Trump presidency, something they were not expecting.

Latin America: For months, Latin America has been on edge as Donald Trump marched toward the White House on the back of isolationist rhetoric that seemed to blame the region — and its immigrants — for harming the U.S. economy and stealing jobs.

On Wednesday, Latin American leaders were cautiously congratulating the now president-elect and urging him to maintain the United States’ historic ties to the hemisphere. (5) Donald Trump’s victory left people across Mexico scrambling to figure out the impact for a country that shares a 2,000-mile border with the U.S. and has frequently been his target on the campaign trail. (6)

Monday 11/7
  • The chief of the International Monetary Fund on Monday called on governments and businesses to do more to promote the same economic opportunities for men and women and to fight discrimination that interferes with those goals. (7)
  • China’s exports fell again in October in a fresh sign of weak global demand that is complicating efforts by Beijing leaders to shore up economic growth and reduce reliance on trade and investment. (7)
Tuesday 11/8
  • The Presidential Election was held in the United States with a Trump victory that surprised many.
  • On Friday, in the last economic snapshot before voters go to the polls, the government reported that the jobless rate fell to 4.9% in October, matching the level in February 2008. Today, though, most economic bellwethers are showing improvement. Particularly encouraging was the fact that hourly wages rose 2.8% compared with a year ago, the best gain in more than seven years. (8)
Wednesday 11/9
  • Key battleground states Pennsylvania, Michigan and Wisconsin had voted for the Democratic candidate in every presidential election for a generation. Ohio, Minnesota and Iowa have been part of winning Democratic maps, as well. Trump outperformed expectations in all of them, moving most into the Republican column after President Barack Obama twice swept the region. (7)
Thursday 11/10
  • After a sharp sell-off overnight in Asia, markets staged a recovery on Wednesday as investors shook off the shock of a Donald J. Trump presidency and began to focus on whether his mix of policies could spur a still-fragile global economic recovery.
  • Futures for the Standard & Poor’s 500-stock index initially plunged 5% but recouped nearly all their losses when stocks started trading in the United States. The major market indicators ended the day up more than 1%. (8)
Friday 11/11
  • Warren Buffett on President-elect Trump: ‘He deserves everybody’s respect’ (9)
  • Stocks in Asia’s emerging markets sold off sharply Friday after U.S. Treasury yields rose. Indonesia’s Jakarta Composite Index JAKIDX, -4.01%  was off 3%, the Philippines PSEi PSEI, -2.88%   tumbled 2.9%, and Malaysia’s FTSE Bursa Malaysia KLCI FBMKLCI, -1.12% sank 1%.

Market Close

Benchmarks closed mostly in the green on Thursday as investors scooped up shares of large banks. The U.S. banking sector soared to levels not seen since the midst of 2008 financial crisis. A possible move towards lighter regulation and increase in fiscal spending helped banks gain traction.  (10)

Contributor: Matthew Scheivert

Sources:
Al Jazera: (1),The Guardian (2), The Telegraph (3), BBC (4), Miami Herald (5), The Wall Street Journal (6),Newser (7),  The New York Times (8), CNN (9), Nasdaq (10)