In a stunning victory, republican candidate Donald Trump has been elected America’s 45th president. He won 279 electoral votes compared to democrat Hillary Clinton’s 218. Republicans also retained control of the House of Representatives and the Senate.
Exchange-traded funds tied to Mexico are down about 8% this morning, in the wake of Donald Trump’s victory. The iShares MSCI Mexico Capped ETF has its biggest one-day drop since 2008. The mexican peso is off 8% vs the US dollar.
Long-dated U.S. Treasuries fell in price pushing up yields on expectations President Trump will boost fiscal spending. Yields at the short end have fallen on safe haven buying and fading expectations that the Federal Reserve will raise interest rates in December. Odds of a December Fed rate hike fell below 50% in the wake of Trump’s victory according to Bloomberg News, citing U.S. overnight indexed swaps. The odds were as high as 82% on Tuesday. The CME’s FedWatch tool did not show such a steep drop, putting the odds of a December rate hike at 67%, down from over 71% prior to Election Day.
Serving the West Side first, I am Bill Roller of BR Capital for 1360 KUIK.
