Daily Market Briefing, Asia Pacific

• Trump trade. Post US election repricing continues. US yields rose. Widening yield spreads are pushing up the USD. AUD on the backfoot.• US data. Trump policy agenda is USD supportive. Data wise, US CPI due tonight. Sticky core inflation could add to the USD’s upswing.• Local news. Consumer sentiment improved. Business conditions holding up. Q3 wages due today. Monthly jobs report out tomorrow. The post US-election repricing in markets extended overnight with participants continuing to factor in what the Trump policy mix of trade-tariffs, greater fiscal spending, and steps to curb US immigration will mean for the outlook. Reports...

• Market swings. US equities powered ahead, while bond yields & the USD gave back some of their post US election gains. AUD & NZD rose.• Central banks. BoE & US Fed cut rates. Fed still on a path towards ‘neutral’. In time Trump policies may constrain its ability to lower rates as far as it thinks.• China measures. AUD & other cyclical assets also boosted by expectations China will announce more stimulus. Will China underdeliver again? A reversal of fortunes across most asset classes over the past 24hrs as markets cooled their jets a bit about President Trump’s second...

• Getting set. Risk assets outperformed overnight & the USD lost ground. A paring back of ‘Trump trades’ continued ahead of the big event.• US election. Voting progressively closes later today. The battleground states are key. Bursts of market volatility look likely as results flow out.• RBA holds. No change in rates or guidance. The RBA is standing out from the pack. Gradual/modest policy easing anticipated over 2025. Risk assets outperformed overnight as voting in the US election got underway. Given the narrowing in opinion polls and probability gauges over recent days market participants have continued to hedge their bets...