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  • Donald Trump's election victory has wrong-footed many investors

  • and triggered a convulsion across financial markets.

  • And here are some charts that show how it'll be independent by expectations that Mr. Trump will initiate big economic stimulus package of tax cuts and infrastructure spending.

  • Our first chart is of the DXY dollar index, which is powered-high on the predictions of quickly economic growth

  • and subsequently higher interest rates which will suck in foreign capital.

  • The second chart shows that bank shares have bounced higher on expectations over regulatory rollback, and higher interest rates.

  • On the other hand, utilities stocks had sagged precipitously.

  • Now, staying with the witness,

  • this chart match out the perform to US small cap companies.

  • Many which will be shielded from the dollar strength is most of their revenues are generated domestically.

  • But developed markets in general have been winning from the receding phase out of deflation.

  • On the other hand, emerging markets have sagged on strong dollar and trade war concerns.

  • Now staying a little bit with developing world.

  • Here's the chart that shows emerging market currencies tumbling sharply since US election

  • led by the Turkish lira, Mexican peso and the Brazilian real.

  • Bonds of water lost ground , particularly long-dated bonds. And this has pushed the yield of the 10 year US treasury bond

  • almost closely watch financial gauges on the planet to year high of over 2.3 percent.

  • The center of this particularly painful venn diagram of long-dated debts and the emerging markets sans Mexico century bond.

  • Its value has tumbled by more than 13% since US election.

  • Gold is perhaps the most unexpected victim of Trump tantrum, is rising inflation expectations are normally good for the precious metal.

  • But all these could change in 2017 when the new president takes office.

Donald Trump's election victory has wrong-footed many investors

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B2 UK FinancialTimes chart emerging dollar election dated

10 days that shook markets | Markets

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    Sabrina Hsu posted on 2016/11/21
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