CREDIT UPDATE: € iTraxx/Cash Moves

While much of the near-term focus is on the post-election market volatility and implications for the Fed (and other global CBs), attention may shift to the imminent conclusion of the NPC Standing Committee meeting in China, at which markets await any potential further details on stimulus, coming likely on Friday.

• Reports in recent weeks suggested that while a fresh fiscal package of CNY 10trl is expected - financed via special treasury and local government bonds - the package could be larger in the event of a Trump victory - meaning markets may have to move further to price China economic activism on top of the Trump policy agenda.
• In terms of timings for a potential announcement - it's unlikely to be before November 8th (the final day of the NPC meeting), and that also allows the NPC to gauge the election results in the US to make any tweaks to the statement.
• Local analysts in the NPC Observer note that a likely time for an announcement could be on CCTV's Xinwen Lianbo program at 7pm local time (1100GMT / 0600ET), with full details of a potential package to follow later that evening.