Chairman’s Comments: Trump secures Second U.S. Term
As we woke up in the UK to the news Donald Trump was closing in on victory over Kamala Harris in the long anticipated American election, our Chairman David Atherton gave his initial thoughts on the final result exclusively to our website.
Please see David’s remarks below.
“The Donald Trump victory in the US Presidential Election caused high volatility in the markets overnight and the following morning, with global stocks and the dollar rising sharply. There was obviously a degree of emotion in this, for example the US Tech Index rose less than 2%, but Trump champion Elon Musk’s Tesla shares showed double digit gains in pre-market trading, and Trump’s own TruthSocial company was 50% up!
Mr Trump’s emphasis on import tariffs, deregulation (particularly in oil) and tax cuts are seen by markets as somewhat inflationary, reflected in the uptick in both the dollar and US bond yields, and drop in the oil price.
Market players, who remember Mr Trump’s earlier colourful but fiscally quite normal Presidency clearly think that his ‘bark is worse than his bite’, and are currently discounting some of his stump speech rhetoric. For example, Chinese shares have hardly moved, and European shares are slightly up.
Note that the removal of uncertainty, plus the traditionally strong time of year in markets also means that any negative moves between now and the January inauguration are unlikely”.
Markland Hill Wealth work in partnership with many of the premier global investment managers and as further commentary and analysis is available, we will be privileged to share this with our clients.