United States

 The following article by David Haggith was published first on The Great Recession Blog:

Trump is market magic. The Donald spoke, offering nothing he hasn’t said hundreds of times before in his campaign speeches, and the Dow parted its way through the 21,000 barrier without hesitation. The stock market’s rise from 20k to 21k also tied a record for the quickest 1,000-point gain. How long will this rampaging bull market last?  Is 22,000 now an easy reach?

Russian and Syrian jets nearly hit U.S. forces in northern Syria on Tuesday when they attacked positions held by Syrian Democratic Forces, a US ally in the ongoing effort to expel the Islamic State from Syria, the top U.S. commander in Iraq and Syria said Wednesday.

Just to clarify - Trump said nothing new at all - and added no detail, another major US retailer blew up, 'hard data' disappointed (soft surveys gained), Fed speakers were the most hawkish since Volcker, and The Dow soars 350 points to top 21,100... makes perfect sense...

In the latest warning from the White House that it is set to unleash trade policy that will be in sharp conflict with generally accepted trade norms, most likely a reference to some form of Border Adjustment Tax, the Trump administration has warned that the U.S. isn't and won't bound by decisions made at the World Trade Organization, in outlining a new trade agenda that "promises to root out unfair practices by foreign countries" and to escalate what are already simmering trade conflicts.

Via Kevin Muir of The Macro Tourist blog,

The easiest way to become a trade-a-saurus is to assume correlations will continue forever and mindlessly fade divergences with the assumption they will recouple. Yet these divergences often offer clues that something might have changed and deserve further investigation.

Over the past couple of decades, ten year US inflation breakeven levels have traded inversely with the US dollar. This should be no surprise and makes sense. Lower US dollar equals more inflation.