Investing.com - Here are the top five things you need to know in financial markets on Friday, November 11:
1. Bonds lose $1 trillion on Trump-induced global sell-off
The global bond market has lost more than $1 trillion this week on speculation that new policies from U.S. President-elect Donald Trump will boost spending and accelerate inflation.
According to Bank of America Merrill Lynch, global bonds slumped $450 billion on Thursday in its fourth day of declines, pushing losses past $1 trillion for only the second time in two decades.
Of note, U.S. bond markets will remain closed on Friday for the Veterans’ Day holiday.
2. Mexican peso hits record low amid EM currency rout
The Mexican peso hit a record low against the dollar (USD/MXN) on Friday as investors worried over the effect of what newly elected President Donald Trump’s foreign policies could entail for emerging markets (EM).
Throughout the presidential campaign, Trump had promised to enforce protectionist trade policies, including the renegotiation of North American Free Trade Agreement (NAFTA).
The EM currency sell-off was widespread on Friday with the Indonesian rupiah sinking to levels that forced the Bank of Indonesia to intervene to stabilize the market.
The Malaysian ringgit continued to show weakness on Friday after logging a 3% slide a day earlier, while the Chinese yuan also hovered near record lows.
3. Global stocks take breather from week of Trump Trade
Global stocks looked set to take a breather as investors continued to chew through speculation of what impact possible new policies from President-elect Donald Trump will have on worldwide trade.
Though the Dow hit a new record high on Thursday, tech companies were hit by concern over past promises by Trump to bring American factories home. U.S. futures pointed to a lower open.
At 5:58AM ET (10:58GMT), the blue-chip Dow futures shed 0.82%, S&P 500 futures traded down 0.80% and the Nasdaq 100 futures gave up 0.55%.
European markets were headed lower in mid-morning trade. Germany’s DAX slipped the least thanks to gains in shares of Allianz (DE:ALVG) after the insurer reported a 36% jump in profit. London’s FTSE 100 led the losses as the leader of Britain's Liberal Democrat Party said on Friday that his lawmakers would vote against triggering the formal process of leaving the European Union unless the government promises to hold a second referendum.
Emerging market shares and currencies slumped on Friday as investors feared that higher U.S. interest rates under incoming President Donald Trump would spark capital outflows.
4. Alibaba surges past $13.36 billion sales record on Single’s Day
Alibaba Group Holding (NYSE:BABA) surged past last year’s record 91.2 billion yuan ($13.36 billion) in online sales on “Single’s Day” with nearly eight hours left in the annual event which encourages individuals with no significant other to purchase something for themselves.
“Single’s Day”, that began as an “anti-Valentine’s Day” in 2009 and is also known as “Double 11” as it takes place yearly on November 11 throughout, moves more product than the U.S.’ Black Friday and Cyber Monday combines and Alibaba was expected to take in more than $20 billion this year.
On the downside, so far sales growth has retreated from last year’s 60% as online shoppers concentrated on larger discount items. Shares in the Chinese e-commerce giant were down 1% in pre-market trade on Friday.
5. Copper continues impressive rally, gold hits 4-week lows
In metal markets, copper futures staged yet another impressive rally with gains of more than 5% on Friday and was on track for its biggest weekly gain since records began 30 years ago, amid expectations that a Donald Trump presidency could unleash a flood of infrastructure spending and increase demand for the medal.
Gold prices, on the other hand, dropped to fresh four-week lows on Friday, as market sentiment continued to improve amid growing optimism surrounding the effects of a Trump presidency on the U.S. economy, diminishing the appetite for the safe haven metal.