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Economic data this month have been consistent with the assessment laid out by Federal Reserve policy makers at the conclusion of their Nov. 1-2 meeting. A pickup in wage growth, steady household spending and inflation approaching the Fed’s 2 percent goal explain why financial markets anticipate the Fed will raise its benchmark interest rate in mid-December. On Wednesday, minutes of the policy makers’ November meeting will shed more light on the Fed’s intentions.

Emerging Asia Sees $11 Billion Outflow on Dollar’s Rally

Global funds sold about $11 billion of equities and bonds in Asia’s emerging markets after Donald Trump’s victory in the U.S. presidential election as expectations for his economic policies sent Treasury yields higher and sparked the dollar’s strongest rally in eight years.

India suffered the biggest outflows between Nov. 9 and Nov. 18, followed by Thailand, according to calculations by Bloomberg using official data. The capital flight trims the year-to-date inflow into India, Indonesia, the Philippines, South Korea, Taiwan and Thailand to around $55 billion.

“Fund outflows from emerging markets will probably continue for a while and then investors will see if Trump will carry out some policies he has mentioned before the election, such as fiscal stimulus and protectionist-type trade policies,” Masakatsu Fukaya, an emerging markets trader with Mizuho Bank Ltd. in Tokyo, said in a phone interview. “Many of his policies may lead to a stronger dollar and are negative on the emerging markets.”

India: Foreign investors have been net sellers of $1.5 billion in bonds and $1.4 billion in equities from Nov. 9-17

Thailand: Global funds were net sellers of 80.5 billion baht ($2.3 billion) in bonds and $534.3 million in stocks from Nov. 9-18

Indonesia: Overseas investors sold a net total of 13.9 trillion rupiah ($1 billion) in local debt from Nov. 9-16 and $444.2 million in equities from Nov. 9-18

South Korea: Global funds were net sellers of 30 million won ($25,500) in listed bonds in Nov. 9-17, and $949.1 million in Nov. 9-18

Philippines: Investors were net sellers of $170.6 million in stocks in Nov. 9-18. No comparable data is available for bonds

Taiwan: Global funds were net sellers of $2.75 billion in stocks in Nov. 9-18. No comparable data is available for bonds

Trump said in a video that he will issue notification of intent to withdraw from the Trans-Pacific Partnership trade deal on his first day in office. He has pledged to spend $1 trillion to rebuild and improve the nation’s crumbling infrastructure.

Goldman: Hedge Funds Are Poised to Get Beaten for the Eighth Year Straight

Those looking to explain what's set to be another bad year for hedge funds could do worse than blame their passion for tech stocks.

The funds have averaged a 4 percent gain year-to-date, but that pales next to a 9 percent rally in the S&P 500. Barring a sharp turnaround before December 31, this will be the eighth year since 2008 that hedge funds have underperformed, according to Goldman Sachs Group Inc. strategists including Ben Snider and David Kostin.

"Most hedge funds have improved performance following first quarter struggles but continue to lag the broad S&P 500 index as well as the average mutual fund," the analysts wrote in a monthly monitor of the funds' performance.

Their reasoning? The same thing that helped hedge funders beat the broader index in the third quarter is what's skewered them since the election.

Going into the fourth quarter, information technology stocks accounted for a 24 percent net weight in hedge-fund portfolios, the highest allocation in more than a decade. While the sector proved to be a great bet from July through October, surging 13 percent, those stocks have lagged more recently as investors speculate that the President-elect's trade and immigration policies will translate into lower earnings for technology companies.

Oil prices fall on renewed doubts on OPEC-led production cut

Oil prices fell in Asian trade on Wednesday, reversing earlier gains, as doubts re-emerged over whether OPEC would agree to a crude oil production cut at a ministerial meeting next week.

A strong dollar, which traded near the 13 1/2-year peak hit last week, also weighed on prices amid thin trading ahead of the U.S. Thanksgiving holiday on Thursday.

International Brent crude oil futures slipped 8 cents to $49.04 a barrel at 0548 GMT after climbing to $49.42 a barrel earlier in Wednesday's session on optimism OPEC would agree to an output cut.

Reuters commodities analyst Wang Tao said that Brent could rise to $49.85 per barrel, a level marked by several technical resistance factors.

U.S. West Texas Intermediate (WTI) crude oil futures fell 8 cents to $47.95 a barrel after rising to $48.30 earlier on Wednesday.

Reference: Bloomberg,Reuters