US equities rose, the S&P500 up 0.5%, amid little major data. The defensive US dollar fell, while bond yields ranged for little net change.

The S&P500 fell 1.3% as Trump election euphoria faded, bond yields were volatile but closed slightly lower, and the US dollar closed little changed. US economic data was slightly firmer than expected.

Bond yields fell, despite firmer producer price inflation and jobless data, while the US dollar was little changed.

The week ended with slightly further reaction to the US election, the S&P500 rising 0.4% to a fresh record high and short maturity bond yields and the US dollar rising.

Initial reactions to the US election were pared overnight, with bond yields and the US dollar lower. US equities had moderate gains, the S&P500 up 0.7% to a fresh record high. Central banks in the US, UK and Sweden eased, but remained on hold in Norway.

Yesterday’s initial reactions to the US election results extended slightly overnight. The US dollar and bond yields are slightly higher, while the S&P500 is up 2.3% to a record high.

Ahead of the US election, a risk-positive mood prevailed, with bond yields and equities rising, and the US dollar falling. Stronger US services data contributed to higher bond yields.

There was little major news for markets which remained volatile ahead of US election results. The US dollar saw little net change overnight, while the AUD and NZD fell slightly.

Bond yields and the US dollar initially plunged in response to US jobs data, which was weaker than expected, but later retraced those reactions.

011124 by Westpac Bank