United States

In years to come markets may well look back at the month just passed as one of the most pivotal in recent memory, at least that's the assessment of DB's Jim Reid. The US election result just over 3 weeks ago sparked a huge divergence across asset classes and also between developed and emerging markets. In fact you could probably start this performance review from November 8th as assets were generally little changed in the first week and a bit leading into the election.

Trump’s Appointments

Paul Craig Roberts

What do they mean?

The final November fund flow numbers are in, and as BofA's Michael Hartnett puts it, November, it was a "watershed" month for fund flows with the largest 5-week
bond outflows in three and a half years at $10 billion...

... the largest 3-week precious metals outflows
in 3.5 years...

... and the largest 5-week equity inflows since October 2013 at $34.5 billion.

• Jobs Report to Give Federal Reserve Final Data Points (WSJ)
• Futures fall ahead of jobs report (Reuters)
• Obama to Block Second Chinese Deal on Security Concerns (BBG)
• Trump Exults in Victory and Mocks Critics at Ohio Rally (BBG)
• China's Central Bank Is Facing a Major New Headache (BBG)
• Trump considering Goldman Sachs COO Cohn for energy secretary (Reuters)
• Trump considering Senator Heitkamp of North Dakota for Cabinet (Reuters)
• Italy Referendum to Set Renzi’s Fate (WSJ)

Did Jeff Gundlach do it again? Shortly after the DoubleLine manager told Reuters yesterday afternoon that the Trump rally is ending, that "stocks have peaked" and that it is "too late to buy the Trump trade", US stocks tumbled to session lows, and have continued to drop overnight, with S&P futures down 0.3%, alongside sliding Asian and European markets; oil and the dollar are also down with the only asset class catching a bid are 10Y TSYs, whose yields are lower at 2.43% after reaching an 18 month high of 2.492% overnight ahead of today's nonfarm payrolls report.