Market Thinking - Market mechanics beats economics most of the time

A quiet holiday week for markets in Asia with a resulting slow start to the nal quarter. Focus will be on the upcoming Chinese Party Congress and thematic investors will focus on policy for structural winners.

The switch back to a Trump Trade mix of assets appears to have been triggered last month by a deal on the budget and renewed talk of tax cuts, but may be just mean reversion. Looking ahead to some risks for 2018, the unwind of QE may produce some unwelcome eects, especially in areas like mortgage backed securities.