Market Overview
- Trump wins presidential race for the White House after being voted out 4 years ago in a remarkable comeback.
- US Equity indices close at massive highs – the DOW going 3.4%.
- The US Dollar strengthens across the board as Election results come in. The US Dollar Index a trade weighted average surged to a 4-month high as the former president Trump scored the necessary votes to become the next President again.
- Trump’s victory fuels speculation for new policies such as tax cuts and tariffs which could ultimately raise inflation again and put the Fed back on a dovish policy stance. Historically in a republican government the US Dollar (USD) has benefited more, especially in recent terms. The Fed is widely expected however to cut interest rates tomorrow morning a quarter of a percent to 4.75%.
- Precious metals and Gold have been sold off in the wake of the US Election results dropping 2.6% into the NY close this morning. Meanwhile Oil has dropped 2.5%. One of Trumps plans is to open up more drilling.
- New Zealand Unemployment jumps to 4.8% in June up from first quarter’s 4.6
- The United States Dollar (USD) is the best performing currency this week with the Japanese Yen (JPY) dragging the chain again in last spot.