AMINA Bank: AMINAX Monthly Reporting

Markets remained mixed after the recent Republicans victory in the US, with US markets rallying and European markets remained volatile owing to tensions surrounding trade-tariffs in Trump’s administration. During the month, S&P-500 and Nasdaq-100 moved up by 5.7% and 5.2%, respectively, while Eurostoxx-50 marginally fell by 0.5%.

In the US, non-farm payrolls came in very low compared to the estimates owing to Boeing strikes as well as the powerful hurricanes- Helene and Milton, that hit the Southeast in late September & early October. In the first Fed meeting after Trump’s victory, Fed has cut the interest rates by 25 bps (in-line with the forecasts). US equities rallied after the election results with bullish sentiment in investors after Trump being re-elected as the US president. US bond yields have marginally fallen since mid-Nov’24 after a sharp up-move during the last couple of months.

However, US bond yields are expected to remain higher on account of elevated inflation levels during Trump’s regime owing to his poll promises of tax cuts. US investment-grade corporate credit spreads hit their lowest level since 1988 in a sign of growing investor confidence in the US.

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