The risk-on rotation trade continues to have legs for the time being but we could see this suffer a bit of payback before long. Yesterday it was still very much the driving force as the Nasdaq 100 fell almost 2 per cent and the Russell 2000 small cap index rallied over 1.7 per cent. That left the S&P 500 almost flat for the session, closing a shade lower at 3,545. US Treasury yields rose, with 10s approaching the psychologically important 1 per cent barrier. US bond markets are closed today for the Veterans Day holiday and there is an empty data roster ahead, though we will be watching Christine Lagarde’s speech later. Donald Trump continues to refuse conceding the election and Republicans are closing ranks around the president as they eye two Senate runoff races in Georgia. They know they need the Trump appeal to get the vote. Have markets been too sanguine about an impending constitutional crisis?
To continue reading, register today
to enjoy limited access to the following:
- Daily trading news
- Funds coverage
- Features on big investment themes
- Comprehensive companies coverage
- Economic analysis