The first speech by President-elect Trump has had a calming effect on the markets. The FTSE 100 fell at the London open, but not by as much ...
The first speech by President-elect Trump has had a calming effect on the markets. The FTSE 100 fell at the London open, but not by as much as the futures market was predicting, it is currently down by just over 1.6%. Trump definitely sounded more Presidential than he has done at any stage during the election campaign.
In fact, one could argue that this outsider has delivered an establishment-style victory speech, which is soothing stressed markets. This suggests that a win for President Trump is not yet America’s Brexit moment. US Treasuries have reversed earlier gains, and yields are rising.
The Mexican peso has also backed away from record lows vs. the USD. The yen is giving back early gains; gold has backed away intra day highs and is falling back towards $1,300. Could the markets be hoping that - a) Trump won’t be as bad a President as they thought he would be less than 24 hours ago? and b).
That he may actually be more establishment and less maverick than he portrayed himself throughout the campaign? At this stage we can’t answer these questions, but they give the markets lots to ponder today.
Source: bbc.com
