10 November 2016 by lberuti
As the markets emerged from the initial shock of a Trump win, the realities of what could be "Trumpenomics", namely a spike in government spending, a row-back on banking regulation, wholesale tax cuts, (even) less attention paid to environment issues and a country less open to the outside world started to sink in. After an initial continuation of yesterday’s aggressive rally that took us back to the tightest levels of the most recent series of indices – a dealer put it nicely saying he was seeing some very good one-way flow – in the morning, important dispersion among sectors started to appear. Metals & Miners were the most active and outperformed the rest of the market by a fair margin on both sides of the Atlantic, with core banks also in vogue. At the other end of the performance spectrum, emerging markets got hammered and the CDX EM series 26 widened more than 25bps in high volumes, with close to $3bln of index changing hands.