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In a market wrap, analysts at ANZ Bank New Zealand Limited explained that global equities are welcoming reduced US political uncertainty.  

Key Quotes:

“The S&P was up 1.6% at the time of writing, with healthcare and battered technology stocks leading. Key European indices joined the party, up 1-2%. USD was sold, falling against the G10 and emerging markets.”

“The NZD outperformed. The US 2-year yield was up 2bps with the 10-year down 2bps to 3.21%.”

“WTI was down 0.7% after US inventories were reported higher.”

“Gold was broadly unchanged.”


German industrial production rose 0.2% m/m in September, which with an upward revision to August’s print (and on the back of a solid PMI print earlier in the week) suggests momentum has picked up into quarter-end and that the Q3 growth sputter may not persist into Q4.


“As expected, Republicans kept the Senate and Democrats took the House. From here, the House is likely to pressure Trump with subpoenas (taxes, commercial dealings) to which the President has pledged to fight back with investigations against leakers.”

“Reform on healthcare, taxes and immigration are likely to enter gridlock. Some commentators note that a bi-partisan deal on infrastructure is still possible. However, there will be clear differences in views on how to fund it. Trump maintains control over foreign policy and is likely to step up pressure on China, implying external risks to growth and ongoing market volatility.”

“The Fed is likely to be breathing a sigh of relief as the fiscal sugar rush looks poised to fade. Overall, the market is taking the news in its stride with equities moving higher, USD being sold, and the yield curve flattening. Corporate America has two years of gridlock which reduces uncertainty and should ease investment decisions.”