- Title: Early market panic subsides after shock Trump election win
- Date: 9th November 2016
- Summary: LONDON, ENGLAND, UK (NOVEMBER 9, 2016) (REUTERS) VARIOUS OF TRADERS AT BGC PARTNERS TRADING FLOOR IN CANARY WHARF (SOUNDBITE) (English) MARKET STRATEGIST AT BGC PARTNERS, MIKE INGRAM, SAYING: "Yes, so I think we're dealing with a bit of a bungee jump now, aren't we. So when the first swing states' results came in at one, two o'clock in the morning, UK time, we saw pretty much outright panic in some markets. We saw gold up by 50 dollars an ounce, we saw a flight into treasuries, into U.S. debt, we saw S&P 500 U.S. futures down by five percent and a similar kind of opening in prospect for Europe and the FTSE100. But in fact, now we've got to the open and markets have started to trade in Europe, we're seeing relatively small loses, the FTSE100 has actually somehow managed to claw it's way into the green. So not only did the analysts misjudged the result of this presidential election campaign, but they also seemed to initially at least to have misjudged the market reaction to it." VARIOUS OF TRADERS AND TRADING FLOOR (SOUNDBITE) (English) MARKET STRATEGIST AT BGC PARTNERS, MIKE INGRAM, SAYING: "Okay we know President Trump is a very different kind of candidate, he will be undoubtedly no matter what kind of moderating influence the Republicans, a very different kind of president, but at least there seems to be some sort of more continuity of the machinery of government, as I say it's another two months before he even takes office. So I think we're not quite looking into the abyss as we thought we were on June 24th. Having said that, this is a marathon and not a sprint and in principal Donald Trump is going to be president for the next four years." VARIOUS OF TRADERS, TRADING FLOOR (SOUNDBITE) (English) MARKET STRATEGIST AT BGC PARTNERS, MIKE INGRAM, SAYING: "I think as we see the details of these policies thrashed out, how are they going to be rolled out, what kind of enabling legislation is going to be, have to be put in place, what kind of time scale etc., then the market is going to be able to price it all in. At the moment I think people are saying 'well hang on a second we actually know very little about what's going to happen, let's just hold our horses and you know just try and keep it steady'." VARIOUS OF TRADERS AND TRADING FLOOR (SOUNDBITE) (English) MARKET STRATEGIST AT BGC PARTNERS, MIKE INGRAM, SAYING: "We need to know well who is going to be in his cabinet, what are the track records of these people, how are the policies actually going to work in practice. And of course we've got to see what the dialogue, what the dynamic is between Capitol Hill Republicans and Donald Trump. It just seems for many of the last few weeks, the closing weeks of the presidential campaign he's actually been at war with what is notionally his own party." TRADING FLOOR
- Embargoed: 24th November 2016 11:53
- Keywords: USA presidential election Donal Trump markets BGC Parters Mike Ingram
- Location: LONDON, ENGLAND, UNITED KINGDOM
- City: LONDON, ENGLAND, UNITED KINGDOM
- Country: United Kingdom
- Topics: Economic Events
- Reuters ID: LVA00157Q4PJB
- Aspect Ratio: 16:9
- Story Text: The U.S. dollar, Mexican peso and world stocks began to steady in the European morning on Wednesday (November 9), having been hammered overnight as Donald Trump swept to victory in the U.S. presidential election.
European shares were down less than 1 (one) percent and investors were returning to other markets that had been sent into a tailspin as it became clear the Trump was set for a dramatic victory over heavily-favoured Democrat Hillary Clinton.
Investors fear a Trump victory could cause global economic and trade turmoil and years of policy unpredictability, which among other things will discourage the Federal Reserve from raising interest rates in December as long expected.
Sovereign bonds, the Japanese yen and gold were all giving back ground having surged as the state results had come in overnight and also sent the Mexican peso into near free-fall as once again polls and betting markets proved woefully wrong.
The mild reaction from European stocks was nowhere near as bad as futures markets had indicated and there were signs that the dollar, as well as other currencies and asset classes hit hard overnight, were beginning to level out.
"I think we're dealing with a bit of a bungee jump now, aren't we," said Market Strategist at BGC Parnets, Mike Ingram.
"The FTSE100 has actually somehow managed to claw it's way into the green. So not only did the analysts misjudged the result of this presidential election campaign but they also seemed to initially at least to have misjudged the market reaction to it," he added.
In the European morning, the impact was far weaker than the reaction to Britain's vote to leave the European Union in June which wiped trillions of dollars off world markets.
"We're not quite looking into the abyss as we thought we were on June 24th. Having said that this is a marathon and not a sprint and in principal Donald Trump is going to be president for the next four years," said Ingram.
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 Clinton, the Democratic candidate whose gold-plated establishment resume included stints as a first lady, U.S. senator and secretary of state.
Markets had favoured Clinton as a status quo candidate who would be considered a safe pair of hands at home on the world stage. Analysts had no such certainty about Trump whose powers could be bolstered by the Republican's control of the Senate.
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