UNITED STATES
Equities
- Health-insurer stocks rally as Democrats taking the House was seen as reducing the risk of Republicans being able to further weaken, or repeal Obamacare.
- Bank shares are lagging amid concerns that Democrats will increase scrutiny on the sector.
- Defense stocks underperformed.
- Cannabis sector rallied thanks to legalization expansion and Jeff Sessions being forced from AG post.
Rates
- The yield curve flattened in response to a divided Congress.
- Fixed-income markets may be complacent about inflation risks.
- Rising mortgage rates are becoming a significant headwind for the housing market.
Misc
- There is $7.6k of student debt outstanding per each working-age person in the US.
EMERGING MARKETS
- Strong headwinds for EM capital flows due to Fed's quantitative tightening and higher rates.
EUROPE & UK
- Retail sales growth has been slowing.
- UK housing market continues to cool.
Newsletter by Lev Borodovsky for WSJ
Submitted November 08, 2018 at 03:18AM by ThugEntrancer https://ift.tt/2qBFA4c
