📆 Wednesday, November 6
► European markets saw a reversal of early losses as U.S. optimism bolstered sentiment across the region. The Stoxx Europe 600 index climbed by around 0.7% after futures pointed to a U.S. rally, with sectors like industrials and financials gaining. The stronger U.S. dollar pressured the euro and pound, reflecting global shifts in anticipation of Trump’s pro-growth policies. Novo Nordisk’s Q3 net profit grew by 21%, with an optimistic 2024 growth outlook at 23-27%.
► In the US, markets surged on expectations of a Trump victory. US stock futures soared, with S&P 500 futures climbing close to 2%. The “Trump trades” saw a surge, driven by expectations of reduced regulation, corporate tax cuts, and a stronger USD. Small caps outperformed, with the Russell 2000 index jumping 5.5% as domestic-focused companies looked to benefit from Republican policies. Treasury yields rose sharply, with the 10-year hitting a four-month high at 4.40%. The USD index posted its strongest advance since 2020, climbing 1.5%. The USD strength is in stark contrast to yesterday's market moves (before results came in) where many investors sold the USD (our Chief Analyst Robert Lindner positioned us LONG in the USD against the market move)
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