- Title: Market watchers comment on Trump victory, draw comparisons to Brexit
- Date: 9th November 2016
- Summary: LONDON, ENGLAND, UK (NOVEMBER 9, 2016) (REUTERS) VARIOUS OF CANARY WHARF OFFICE TOWERS CANARY WHARF CONCOURSE CANARY WHARF STATION SIGN (SOUNDBITE) (English) PANMURE GORDON, MARKET COMMENTATOR, DAVID BUIK, SAYING: "It was a real shock, but I think if we possibly thought it out, the fact that so many people had preconceived ideas that if Trump won the presidential election what would happen to markets. There is a natural correlation, if you think about it, with Brexit - on June the 24th, the pound tanked from 1.50 to the dollar down to whatever it was, 1.25, which by any standards is an enormous move and the FTSE fell a couple of hundred points, and at the end of two weeks everybody, apart from the value of the pound, said what's the problem?" PEOPLE WALKING OFF ESCALATOR (SOUNDBITE) (English) CANARY WHARF WORKER, TIM HENDERSON, SAYING: "Financial markets will be impacted severely to begin with but, like Brexit, they'll settle down and the U.S. will have to accustom themselves to life under a new person much the same as we are accustomising ourselves to life under Brexit." (SOUNDBITE) (English) CANARY WHARF WORKER, AMOLKING AONKAR, SAYING: "Yes I work in the financial markets, I think Trump's victory is definitely going to be a big win for the Europeans." (SOUNDBITE) (English) CANARY WHARF WORKER, SUSANA LEITH-SMITH, SAYING: "I think it's going to be a very bad day, we'll see how quickly the recovery is going to be but it's going to be a difficult day, especially once the U.S. opens. It wasn't what the markets were pricing in so, it's going to be tough." PEOPLE WALKING OFF ESCALATOR TRAINS GOING ACROSS BRIDGE (SOUNDBITE) (English) PANMURE GORDON, MARKET COMMENTATOR, DAVID BUIK, SAYING: "On the global economy - the rhetoric that I don't want to hear is 30% trade tariffs against China, you know, we don't need them. Oh yes, you do, you need to have conversations going on and you have to have words with the Chinese saying, look you cannot flood the market with steel at X dollars a ton when we're doing it at Y because we have people to employ. Life's a tradeoff and as long as we don't hear that kind of rhetoric, I think he [Donald Trump] will be quite a welcoming individual." ADVERTISING SCREEN SHOWING U.S. ELECTION COVERAGE (SOUNDBITE) (English) PANMURE GORDON, MARKET COMMENTATOR, DAVID BUIK, SAYING: "So as far as the UK is concerned, this could be a good deal because with Hillary Clinton in the White House there would've been no chance of doing a really tasty, either free market deal or a sensible deal, with the United States on trade, now there's half a chance. I'll take that." CANARY WHARF
- Embargoed: 24th November 2016 12:37
- Keywords: Donald Trump US election election markets finance economy European Union trade
- Location: LONDON, ENGLAND, UNITED KINGDOM
- City: LONDON, ENGLAND, UNITED KINGDOM
- Country: United Kingdom
- Topics: Economic Events
- Reuters ID: LVA00157Q4QDP
- Aspect Ratio: 16:9
- Story Text:European shares fell on Wednesday (November 9) after Republican nominee and political outsider Donald Trump won the U.S. presidential election, bringing uncertainty that roiled global markets.
However, the market rallied off its lows, with traders saying Trump's acceptance speech was balanced and conciliatory, raising hopes that some of the more fiery rhetoric of his campaign might be behind him.
The STOXX Europe 600 fell 0.6 percent, having been down 2 percent in early trade. Growth-sensitive sectors such as autos, financials and oil were among the biggest fallers.
Markets had priced a win for Democrat Hillary Clinton, who was seen as a status quo option. There is substantial uncertainty about Trump's policy positions, as well as market scepticism over his views on topics such as trade.
"I think it's going to be a very bad day, we'll see how quickly the recovery is going to be but it's going to be a difficult day, especially once the U.S. opens. It wasn't what the markets were pricing in so, it's going to be tough," said Susana Leith-Smith, a financial sector employee in Canary Wharf.
"Financial markets will be impacted severely to begin with but, like Brexit, they'll settle down and the U.S. will have to accustom themselves to life under a new person much the same as we are accustomising ourselves to life under Brexit," said Tim Henderson, another Canary Wharf worker.
There have been many comparisons to the market selloff following Britain's vote to leave the European Union in June. David Buik, market commentator at Panmure Gordon, said investors were, once again, overreacting to the results.
"There is a natural correlation, if you think about it, with Brexit - on June the 24th, the pound tanked from 1.50 to the dollar down to whatever it was, 1.25, which by any standards is an enormous move and the FTSE fell a couple of hundred points, and at the end of two weeks everybody, apart from the value of the pound, said what's the problem?"
On the trade front, Buik added that he thought the UK would benefit from a Trump presidency.
"As far as the UK is concerned, this could be a good deal because with Hillary Clinton in the White House there would've been no chance of doing a really tasty, either free market deal or a sensible deal, with the United States on trade, now there's half a chance." - Copyright Holder: REUTERS
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