- Title: Markets "coped well" with U.S. election result, says German trader
- Date: 9th November 2016
- Summary: FRANKFURT, GERMANY (NOVEMBER 9, 2016) (REUTERS) WIDE OF TRADING FLOOR VARIOUS OF TRADERS AT DESKS TRADING BOARD TRADING BOARD SHOWING CHANGES TRADERS TRADING BOARD SHOWING LOWEST DAX INDEX AT 10174.92 POINTS AND LAST DAX INDEX AT 1040.32 POINTS TRADERS TRADING BOARD SHOWING BANK SHARES TRADERS (SOUNDBITE) (German) CAPITAL MARKETS STRATEGIST AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING: "The market has coped well with the surprise election of Donald Trump, because we had two substantial pre-runnings before. On the one side we had the Brexit and many investors this time have bowed out of the market beforehand and now, with the surprise of Trump, they didn't overreact. On the other side even the media didn't want to believe that of course there are also profiteers from the Trump victory, one of them being the pharmaceutical sector, which was outstandingly placed at the markets today and surely has contributed to us being premarket down as far as five percent, but are going to end the trading day with an almost unchanged DAX." TRADERS (SOUNDBITE) (German) CAPITAL MARKETS STRATEGIST AT ODDO SEYDLER BANK, OLIVER ROTH, SAYING: "In the short-term the surprise is being processed, in the mid and long term of course we are going to see more surprises by Donald Trump, not only because of his election manifesto, which he obviously will try to implement as much as he can, but of course by his way of treating the media and the public. There will be always comments by Donald Trump, which are capable of being misunderstood. In the long-term I don't think Donald Trump is going to work alone against the establishment in Washington, but that he will be smoothed step-by-step and at some point maybe even become a politician, latest at the end of his office term." TRADING BOARD TRADING FLOOR
- Embargoed: 24th November 2016 15:27
- Keywords: U.S. election reax markets Germany
- Location: FRANKFURT, GERMANY
- City: FRANKFURT, GERMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA00157Q6VRB
- Aspect Ratio: 16:9
- Story Text:Germany's DAX clawed back early losses on Wednesday (November 9) as investors digested Donald Trump's surprise win in the U.S. presidential election.
"On the one side we had the Brexit and many investors this time have bowed out of the market beforehand and now, with the surprise win of Trump, they didn't overreact. On the other side even the media didn't want to believe that of course there are also profiteers from the Trump victory, one of them being the pharmaceutical sector, which was outstandingly placed at the markets today and surely has contributed to us being pre-market down as far as five percent, but are going to end the trading day with an almost unchanged DAX," Oliver Roth, capital markets strategist at Oddo Seydler Bank told Reuters TV at the stock exchange in Frankfurt.
Investors fear Trump's victory could cause global economic and trade turmoil and years of policy unpredictability, which among other things could discourage the Federal Reserve from raising interest rates in December as long expected.
Pledges by Trump that he would also forge strong relations with other big nations helped ease concerns of heavy tariffs being slapped on selling to the United States and a starkly more aggressive geopolitical attitude.
Safe-haven sovereign bonds, the Japanese yen and gold were all giving back ground fast, having surged in Asian trading as the election results had come in and, as in the case of the Brexit vote in June, proved polls and betting markets woefully wrong.
But the mood in European trade was far more measured.
"There will be always comments by Donald Trump, which are capable of being misunderstood. In the long-term I don't think Donald Trump is going to work alone against the establishment in Washington, but that he will be smoothed step-by-step and at some point maybe even become a politician, latest at the end of his office term," Roth said.
A wealthy real-estate developer and former reality TV host, Trump rode a wave of anger toward Washington insiders to win the White House race against Hillary Clinton, the Democratic candidate whose gold-plated establishment resume included stints as a first lady, U.S. senator and secretary of state. - Copyright Holder: REUTERS
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