Stocks rally again; Bond market bombs; Japan’s GDP surprise


— LONDON — 1) Investors rush into stocks, ditch bonds: Investors continue to shovel their money into stocks following last week’s U.S. election.

Many analysts had expected markets to drop sharply if Donald Trump was elected, but the opposite has happened.

U.S. stock futures are rising again and European markets are all up Monday, with many key indexes gaining about 1%.

Trump has promised to pursue many pro-business policies and cut taxes, at the expense of the environment and global trade relations. Investors are taking this as a buying signal.

Meanwhile, traders are ditching government bonds around the world.

“Expectations of U.S. tax cuts and higher spending have increased prospects for more bond issuance and higher inflation in the U.S.,” said Lina Fransson, a fixed-income strategist at Swedish bank SEB.

Last week, the Dow Jones industrial average shot up 5.4%, while the S&P 500 and Nasdaq gained 3.8%.

2) Takeover time: Samsung Electronics has announced it’s taking over Harman International Industries, a U.S. company known for developing connected car systems and audio products.

Samsung is paying about $8 billion in cash to do the deal, or $112 per share. That’s a 28% premium over Harman’s closing share price on Friday.

“The transaction will immediately give Samsung a significant presence in the large and rapidly growing market for connected technologies, particularly automotive electronics,” the company said in a statement.

More than 30 million vehicles globally are currently equipped with Harman connected car and audio systems.

3) Japan’s GDP surprise: New data show Japan’s economy grew at an annualized 2.2% in the third quarter, faster than economists had been expecting.

Japan’s central bank has been using a range of moves to stimulate the sluggish economy and boost inflation.

“Combined with the recent weakening of the yen, today’s figures … reduce the pressure on the Bank of Japan to introduce more stimulus,” said Marcel Thieliant, a senior economist at Capital Economics.

4) Coming this week: Monday – Los Angeles Auto Show begins Tuesday – Megyn Kelly book release, Home Depot earnings Wednesday – Target earnings Thursday – Walmart earnings; Janet Yellen testifies about economic outlook Friday – “Fantastic Beasts and Where to Find Them” release, “The Grand Tour” premieres on Amazon Prime.