JOHN AUTHERS: Trading is over here on Wall Street at the end of Donald Trump's first week in office. Here's the New York minute. It's been a quiet end, you can see from both the stock markets and the bond markets. So it's been really rather a historic week both in politics and in the US stock market, which has hit a new all time high.
If you take a look at the Michigan consumer sentiment data, which we got today you can see that people are feeling good. That helps explain the market high. It's as strong as it's been in more than a decade. Meanwhile, if you take a look at the VIX index, often it is the fear index of volatility on the S&P, you can see that investors themselves are feeling very relaxed.
This is the 10th anniversary of the all time low for the VIX at just before the credit crisis. It almost got back there this week. Quite remarkable, given the political drama, it seems safe bet the volatility will rise.
Meanwhile, if you take a look at how Chinese companies that derive most of the revenues from China are doing compared to the rest of the developed markets, you can see that China has had a lot to do with the reflation rally. That's important, because the next great confrontation will be with China. There are only 207 more weeks to for the Trump presidential term. Back to the New York Minute.