The past week saw markets digest the mixed signals about the implications of Donald Trump's election victory and early policy moves.

In brief 

Equities and Currency Volatility: U.S. equities surged early in the week, driven by sectors like financials and energy, but the rally faded as markets began reevaluating the "Trump trade." Meanwhile, the U.S. dollar hit a two-year high before pulling back slightly.

Earnings Growth Paradox: Companies with strong international exposure, like Alphabet and Nvidia, are leading U.S. earnings growth. However, Trump's "America First" policies could challenge their success if trade restrictions and tariffs are implemented aggressively.

Central Banks on Alert: Inflation risks are causing Central Banks to rethink their policies. The Fed’s December rate cut odds dropped, while the RBA and other global banks are taking a more cautious approach to easing.

Get access to the charts:  www.investsense.com.au/industry-articles/market-whiplash-how-markets-are-reacting-to-trumps-policy-signals 

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