Trump’s blasting win causes uncertainty and turbulence to the global financial markets

Van Rompuy meets top US CEO’s at NY stock exchange. Location: New York, United States Date: 23/09/2011 © European Union Source: EC – Audiovisual Service

Van Rompuy meets top US CEO’s at NY stock exchange.
Location: New York, United States
Date: 23/09/2011
© European Union
Source: EC – Audiovisual Service

So Donald Trump against all odds won the US elections and will become the 45th President of the United States of America. The latter had as a result to cause severe and immediate turbulences to the world’s financial markets which experienced serious losses in the first few hours of the elections.

However, Trump’s victory speech that came right after calmed the markets which started to return to pre-election levels. His winning speech was totally different compared to his provocative presidential campaign promises and thus provided at least for now a sense of reassurance.

Yesterday, Barack Obama met with Donald Trump at the White House and discussed both domestic and foreign affairs issues. During their meeting, the markets climbed even further with the Dow Jones Industrial Average to increase by 1.43%, hitting a record high.

Trump’s victory aftermath

The scenario under which Donald Trump would win the U.S. elections was among the ones that risk analysts had assessed but it was never expected that the markets would absorb all the turbulences so quickly and bounce back to pre-election levels within hours.

Nevertheless, the fact that the stock markets reacted so rapidly and gained back all their losses is not at all reassuring investors who still worry about the future policies of Donald Trump. It is quite certain that the financial markets will face more volatility as political and economic uncertainty will spread above the White House.

Stock markets and currencies volatilities

The U.S. elections and precisely the win of Donald Trump had as a result to cause global market shocks. The European stock markets fell upon their opening on Wednesday before recovering  swiftly at the end of the day. More specifically, FTSE 100, a capitalization-weighted index of the 100 most highly capitalized companies traded on the London Stock Exchange, dropped by 2% last Wednesday but managed to recover. The CAC 40 index, the most widely-used indicator of the Paris market was down by 2.9% on Wednesday opening while Germany’s DAX index fell by 2%.

However, all major European indices seem to have absorbed the direct vibrations of Trump’s victory quite fast. As far as the currency markets are concerned, the dollar has hit its highest 4-month record against the Japanese yen while the Mexican peso has been plunged by 13% on Wednesday reaching 20,58 pesos per dollar at yesterday’s session. In general, the dollar has been strengthened against most major currencies such as the sterling and the euro.

Obama welcomes Trump

Yesterday’s meeting between Barack Obama and Donald Trump that took place at the White House pushed stocks even higher in the prospect of loosening regulation and reducing taxes. The discussions were about domestic and foreign policies and the beginning of the 72-day transition process till Trump’s official inauguration on January 20.

Donald Trump’s stance after his victory has been totally different compared to the one before the elections. A much more moderate behaviour was evidently noted during his victory speech and his meeting with Barack Obama due to which relative calmness to the financial markets was caused.

Too soon to predict Trump and markets

It is indeed too soon to understand what the U.S. President-elect has in mind and how the markets will be reacting to his policies from now on. The financial markets though will be shaking again in the short-term since there is still uncertainty about which exactly will be the U.S. trade, migration and economic policies.

The uncertainty will keep on ruling in the minds of the U.S. citizens and global investors as Donald Trump will start unveiling his intentions about his future plans. However, investors should not be influenced by the immediate developments and act according to their long-term benefit.

All in all, the financial markets will experience volatilities in the short-term but will tend to return to their normal levels in the long-run. The main take-away from Donald Trump’s win is that apparently the American citizens have expressed, following the British citizens recently, their disappointment against the current “rotten” political system and global world order.

America sails now in uncharted waters and so do the global markets.

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Featured Stings

A Young entrepreneur cries out: “start in Europe, stay in Europe”

For the future of Europe youth remains a priority

ECB ready to counter the rise of the euro?

Galileo funding: A ‘small’ difference of €700 million

Commission challenges Council over EU 2014 budget

The refugee crisis brings to light EU’s most horrible flaws and nightmares

UN-based World Summit Award (WSA) presents its master list on digital innovation with impact on society from 24 countries

Predicting two more years of economic stagnation

Why Eurozone urgently needs the ECB to print and distribute at least €500 billion

Economic recovery won’t tackle youth unemployment problem

The Americans are preparing for the next financial crisis

The Irish Presidency bullies the Parliament over EU budget

Commission to decide on bank resolution issues

Cancer research put at risk by General Data Protection Regulation? The possible dangers of a data privacy EU mania

European Union disenchanted with Turkey

European Banking Union: no one is perfect

US – Russia bargain on Syria, Ukraine but EU kept out

Paris, Washington, IMF against Berlin and ECB on money and interest

How I met the Panda Woman

Why do thousands of migrants need to be drowned for Brussels to wake up?

Greece and Ukraine main items on EU28 menu; the course is set

China’s New Normal and Its Relevance to the EU

EU seeks foreign support on 5G from Mobile World Congress 2015 as the “digital gold rush” begins

The developing countries keep the world going

What do Europeans believe about the crisis and the possible way out?

UN Environment Assembly 2017: where the world convenes to #BeatPollution

Meet the Junior Enterprise network at JEWC 2014!

Irish Presidency: Not a euro more for EU budgets

Berlin vies for a Germanic European Central Bank

Mood changes in Europe in favour of growth and jobs

European Energy Union: Integration of markets and need for in-house energy production

Is Eurozone heading towards a long stagnation?

Brexit mission impossible: Theresa May was so desperate that had to appoint Boris Johnson as Foreign Secretary

Mobile young people create the European labour market of tomorrow

EU’s tougher privacy rules: WhatsApp and Facebook set to be soon aligned with telcos

Brexiteer May gets lip-service from Trump and Turkish promises from Erdogan

Dreaming of China

Horse meat runs faster than authorities…

Why France, Italy and the US press Germany to accept a cheaper euro and pay for Greece

The European Parliament x-rays the troika’s doings

Azeri natural gas will keep the EU warm soon

EU Parliament: ECB accountable for not supporting real economy

Does Switzerland really need more medical students?

Syria: A bloody tracer of Trump – Putin rapprochement

Reality Shock

Global Citizen – Volunteer Internships

French election: Will France vote for a reformed or no EU?

Merkel had it her way with the refugees & immigrants but can Greece and Turkey deliver?

EU Migrant Crisis: Italian Coast Guard Headquarters and Italian Navy to give host national opening addresses at Border Security 2016 in Rome

MWC 2016 LIVE: Stripe gives payments leg-up to startups in emerging markets

EU fight against tax-evasion and money laundering blocked by Britain

The EU pollution rights trading system frozen

MWC 2016 LIVE: T-Mobile US reveals 5G trial plans

Youth policy in Europe not delivering for young people

Climate change and health: public health awareness in an international framework

EU free-trade agreements with Canada and US: imagine the fallout if put to national referendums

Why growth is now a one way road for Eurozone

What our leaders hide from us

A European Discovers China: 3 First Impressions

EU Council: The US airlines may freely pollute the European air

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s