Trump Trade? Or just a clear election result trade?

Briefly in today’s #5in5withANZ podcast below:

The Trump trade takes a breather. Fed Chair Jerome Powell is less dovish than expected. China’s retail sales surge, leaving it on track for 4.9% GDP growth this year. And was the Trump trade actually about Trump? Or about a very clear election result?

5 things to know in 5 minutes:

1. The Trump Trade rally took a breather on Friday night, partly as expectations of another Fed rate cut next month were buffeted by a less dovish than expected speech by Fed Chair Jerome Powell, says ANZ Economist Bansi Madhavani, CFA Madhavani.
2. Bansi says initial US jobless claims for November will be in the spotlight on Thursday night, ahead of Non Farm Payrolls on December 6, and the Fed’s next decision on December 19.
3. China’s economy appears to be stabilising. Retail sales figures were stronger than expected in October, says ANZ Greater China Economist Vicky Zhou
4. China’s industrial production in October was slightly less than expected, but still robust. Vicky remains confident in ANZ’s 4.9% China GDP growth forecast for this year, thanks to fresh stimulus plans announced in September.
5. ANZ Group Chief Economist Richard Yetsenga questions whether the post-election surge in US stocks is more about a clear result, than necessarily about Trump’s win and his policies.

In our bonus deep dive interview:

ANZ Senior Commodities Strategist Daniel Hynes analyses the risks of Australia’s gas supply getting redirected into the international market, and what might replace it domestically.

Cheers

Bernard

PS: Catch you tomorrow with a look ahead to the release of RBA minutes.