Wednesday, November 9, 2016

Choppy markets after Trump wins election

Dow was down only 10, decliners over advancers almost 2-1 & NAZ fell 28.  The MLP index added 4+ to the 393s & the REIT index dropped 5+ to the 325s.  Junk bond funds drifted lower & Treasuries sank, with the yield on the 10 year Treasury approaching 2%.  Oil was off pennies & gold jumped up (more below).

AMJ (Alerian MLP Index tracking fund)


Light Sweet Crude Oil Futures,D

Gold Futures,Dec-2016








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Gold pulled back from its biggest jump since Britain's Brexit vote as turmoil across financial markets eased following Donald Trump's surprise presidential election victory.  Bullion earlier surged as much as 4.8% to $1337 as investors sought haven assets, before paring gains as stock markets curbed losses.

Analysts had said that a Trump victory could cause tumult across markets, which had been banking on a continuation of current policies.  His victory prompted traders to cut expectations that the Federal Reserve will raise interest rates in Dec.  A Trump presidency could send bullion to $1395.

Gold Pares Biggest Surge Since Brexit as Trump Turmoil Eases

The ECB is ready to respond to any economic shock stemming from Donald Trump's surprise victory in the presidential election & the bank's chief economist called for "calm."  Stocks fell, before rebounding in US trading , while trading in the $ & other major currencies remained volatile as investors faced up to a shock win for Trump that could upend the global political order.

Fed’s Path to Rate Hike Clouded by Volatility-Spurring Trump Win
In overnight markets, Dow futures plunged in chaotic trading.  Dow sank around as much as 800 but has recovered to only small losses as investors try to assess what Trump's presidency will mean for the stock market.  Recovery in the US markets is a hopeful sign.

Dow Jones Industrials









 

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