As one wag suggested today is Donald Trump draining the swamp or stocking it with alligators. That’s the question posed by a commentator after reading out the list of billionaires who have been appointed to Trump’s Cabinet. The questions are about Mnuchin and Ross as two examples of billionaires who possibly could further gain after their appointments. Trump has assembled a Cabinet that possibly contains the largest number of billionaires possibly in US history. Mnuchin is a former Goldman’s Partner and this appointment goes a little against Trump’s stated ambition which was to break up the banks and investment banks such as Goldman Sachs. Mnuchin is the second former Goldman’s executive that Trump has appointed. Calls have been made again for Trump to remove conflicts of interest, and this issue remains a concern for many members of Congress.
On the day bonds once again continued their declines with the 10 year treasury trading back to about 2.37%. Equities continued their rally as investors looked to the strong Payrolls Data. The equity market closed towards its highs on the day but failed to break the current record.
US Home sales are poised for their best performance in a decade and the Beige Book release suggest that the economy is stirring with incomes rising and people being able to spend more. This is leading to the view that the US economy is growing and that pressure is mounting for the Fed to begin the tightening cycle.
AUSSIE MARKET TODAY.
I expect the Aussie equity market to be slightly stronger on the day as a result of stronger commodity prices. Bonds should be weaker as a result of weaker US Treasurys. The US Dollar Index was strong again and this probably underscores some risk off trades in Europe.