Fixed Income Update 14 Nov 2024
KBVS WEEKLY FIXED INCOME UPDATE
Thursday, 14 November 2024
Market Continues to Anticipate Future Fiscal Policies Under Trump
Trump’s victory, coupled with the Republican majority in the Senate and Congress, has become a significant point of market anticipation. This development aligns with a pro-growth inward policy agenda, expected to curb inflation and limit the extent of Fed rate cut.
However, there are growing concerns about Trump’s potential tariffs on the European automotive sector, which could have notable economic repercussions. The euro recently posted its worst performance in over four years, while automotive stocks underperformed due to fears surrounding these tariffs. This has driven the euro down by 2.21% against the USD over the past week, while the DXY index rose by 2.09% WoW.
Domestically in Indonesia, concerns over a widening fiscal deficit need to remain on the radar for market participants. Additionally, the Rupiah depreciated by 1.61% against the USD last week, adding to the pressure on the economy.
Regards,
KBVS Research Team