One does not need explicit signs of demand growth or supply disruptions, the smell of it will tempt battered bulls to get back into the market. Despite the ceasefire agreement between Israel and Hezbollah brokered by the US last Monday and which came into effect a week ago the warring parties exchanged fire and traded accusations of breaching the truce.
Once again, those that continue to hold exposure to the bourses of the United States instead of commodity assets such as oil are being rewarded. The S&P and Nasdaq march on to new record highs invigorated by a combination of boorish rhetoric from Donald Trump against BRICS economies that plot against the US Dollar's supremacy and something of a 'Goldilocks' ISM Manufacturing PMI reading.
By any standard, last month was highly eventful and even turbulent. The main event was undeniably the US presidential election, which resulted not only in a convincing win of the electorate and the popular vote for Donald Trump but also brought majorities in the House of Representatives and the Senate for the Republicans.
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