- Equity markets initially sold off as the US election result became apparent, but quickly recovered on the promise of spending-led growth stimulus. The S&P/ASX 200 ended the week up 3.7%, the S&P 500 gained 3.8% and the EURO STOXX 50 added 2.6%. Bond yields reflected higher rate and inflation expectations under the new administration with the US 10 Year Treasury Yield increasing by 0.37%, nearing a 12 month high.
- Precious metals retreated as pre-election defensive positions were unwound, with gold declining 5.1% for the week. Iron Ore jumped 22.8% on speculation of increased demand from Trump-led infrastructure spending.
- The Australian dollar ended the week down over 1c against the US dollar at just below US 75.5c, having rallied to as high as US 77.8c pre-election. The US Dollar Index, which measures the exchange rate between the US dollar and a selection of major world currencies, gained 2.1% for the week.The Australian dollar ended the week down over 1c against the US dollar at just below US 75.5c, having rallied to as high as US 77.8c pre-election. The US Dollar Index, which measures the exchange rate between the US dollar and a selection of major world currencies, gained 2.1% for the week.
- The Australian ETF market saw net outflows of A$8m from domestically domiciled ETFs, with the biggest outflows being from Australian equities, US dollars and bearish equity funds. Inflows were into a range of equity funds and defensive assets such as gold and cash.
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