US Dollar Drops, Asian Stocks Bounce Back as Trump Victory Shock Fades

    For the first time in nearly four days, Asian stocks increased in value while the USD dropped from its five-month high against the Japanese yen due to investors questioning the possible overreaction of the financial market to Donald Trump’s recent win during the US elections. The MSCI Asia Pacific Index increased due to energy shares after crude oil prices rose to its highest levels in seven months after the OPEC finally agreed on proposed output cutbacks. For the major currencies, the KRW had the most gains after rebounding from its near-record lows since June 2016. The Japanese 10-year bond yields were also able to maintain its zero value after staying within negative territory for a total of eight weeks.

The Number of Jobless Claimants in UK Grew by 9.8K

The office for National Statistics of UK presented mixed data of unemployment rate which fall to 4.8% from the previous 4.9%, it is considered the lowest since the third quarter of 2005.. The Claimant Count Change presented a negative outlook as the number climb up to 9.8k in the month of October, the result is greater than the expected which is 2K only.

Moreover, the data released last September got affected and modified as it rise to 5.6k with only 0.7K on the previous result. This occurrence showed some signals about the worsening conditions in the labor ministry. This complication further stirred the GBP/USD as it insignificantly slid downside.

U.S. Treasury Yields Soar with Strong Dollar

The U.S. Dollar reached a six-month record high on Monday's Asian trading session because of Trump's planned fiscal policies and goals to drive growth. The uncertainty brought by the so called “Trumponomics” has made the financial market to buy dollars and sell U.S.

Treasuries which is expected to persist for some time. Although there might be correction near Thanksgiving.

For five years, the U.S. Treasury yields have reached a highest two-week gains. This includes all types of maturities which is an after-effect of U.S. Presidential election. People waiting what will happen next after Trump's victory has further boosted the greenback to thirteen and half year highs compare to basket of currencies.

Australia’s Mining Investments Fosters growth to Economy

Mining improves the economy of Australia with recovery of investments and increase in commodity prices. Furthermore, the high demand for Aussie boosts the economy specifically in Queensland and Western Australia since the inflation rates are going back to normal levels.

The unemployment rate has decreased since the peak in 2015 which also slowed down the population growth where the past reports saying it has improved were overstated . Nevertheless, this slow growth is not as bad as it shown a less than expected results.

On the bright side, it is the progress of trades mainly the pricing between imports and exports that gives a promising outlook for the mining investment and the increasing demand for money gives buoyancy in the economy.

Canadian Stocks Reaches Highest Levels in 17 Months Due to Massive Retail Sales Profits
   
    Canadian stocks continued its increasing trend for a total of four days and has already reached its highest levels in 17 months as a result of massive retail sales gains, with retail sales clocking in its biggest profits incurred since April 2016. Canada’s retail sales data showed gains worth 0.6% in September 2016, its biggest gains posted since April and an indicator of the spending of the Canadian government’s recently-minted child benefits. Meanwhile, the Canadian equity benchmarks scored more gains as  the DJIA reached up to 19,000, while the MSCI index for both developing and developed markets increased by up to 3.6% for 2016 and could possibly hit its record highest yearly increase since 2013.

U.S Dollar Gained Much Power Even Before Trump’s Victory

The greens continuously rise after Donald Trump won the American presidential election. However, these upsurge angst companies that imports their products to other countries which caused few investors to place the full responsibility to Trump for they earning less than their average gains because the dollar is too strong.

Moreover, these complaints were on the deck before the new U.S President-elect take his position. The squawks from companies point out that the cause of low earnings is due to the issues regarding the stronger dollar. Some of the large companies that the currency brought headwinds into their firms include Apple, Alexion Pharmaceuticals, Kraft Heinz, Procter & Gamble and Whirlpool.

According to the research made by the Pavilion Global Markets that current stance of the dollar is the top reason why companies earned worse than their expectations, followed by issues concerning Brexit, election, the Fed, and wages.

Nevertheless, Jim Paulsen from Wells Capital Management said in an interview that he predicts that the greenbacks will experience a decline for 2017 because of the increasing inflationary expectations.

Base Metals Continued to Surge Due to Increase in Infrastructure Spending

Metals had a persistent improvement amid on the supposition on Trump’s infrastructure expenditure and weakness in the overall inventories. Copper was able to arrive on its one-week high after the extensive downfall of the base metals. In trading copper within Asia has reached $269.90. However, investors speculate that Trump’s fiscal investment is almost $1trn which is expected to be the driving force for growth but will lessen the supplies considering the fact that China’s yuan hedging. In light of this, the bullish impetus gives rise for the demand of the trend-following fund as it was able to surge the buying pressure. Furthermore, the industrial metals sustained an upward lift amid the strengthening of the U.S dollar compared to other currencies.

Despite China’s procurement of copper as a hedge to overcome yuan devaluation, the data issued specified a positive growth in supply. There is also an expected rally in prices of other  base metals in order to raise an opportunity to replenish short trading commodities.

Oil Market Uncertainty Brought the Prices Down

Market still awaits if OPEC will be able to reduce their production output on Wednesday bringing the oil price down on Tuesday. The next OPEC meeting will be held on Wednesday at Vienna to come up with a decision to cut production. This brought uncertainty in the market resulting in high volatility. Political considerations and set agreement for quota of countries hinders from coming up to an agreement. If there will be no agreement reached, oil prices are expected to rise averaging $45 per barrel until next summer.

As Energy Corporations Retreat, Canadian Stocks Drop to Lowest Levels in Two Weeks

    Canadian stocks dropped to its lowest levels in two weeks after oil companies were subject to significant losses in the light of talks among producers prior to the OPEC meeting scheduled in Vienna, Austria within the week. Energy corporations led the S&P/TSX Composite Index lower after it fell by up to 1.4% for three consecutive days, which is  the longest losing streak for the index since November. Out of the 11 industries in this particular index, 7 companies experienced losses, and industrial stocks also retreated and were subject to significant decreases.

PM Renzi's Plan for Italy's Reformation Has Failed on Sunday

The Prime Minister of Italy, Matteo Renzi had his decision to resign last night after he lose in a constitutional referendum held Sunday, 4th of December 2016. The Italian politician admitted his defeat prior to the issuance of the official results and as expected the exit poll exhibited that Renzi is facing a humiliating defeat.

The referendum rise due to the plan of the 41-year-old PM to establish a major economic reform package in order to reconstruct the political system of the country. As he proposed to reform the power of the senate as well to reduce its number present in the lower house of parliament. Furthermore, he wanted to amend the political authority of every state and region in Italy.

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UK’s PMI Edged Higher in November

The primary businesses in the service sector of U.K had an upsurge last month and its highest rate was recorded January, while the economy continued to have its current momentum despite of the fear of some companies regarding the future markets as indicated in yesterday’s survey.

As the Markit/CIPS PMI handles the data relative to the economic sector as it gained 55.2 points for the month of November versus  the 54.5 October data, the recent results had presented better-than-expected outcome of Reuters poll surveyed by economists.