Financial Market Research and Analysis

Our analysts have their fingers on the pulse of the world's financial market news.

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Trump’s words lead to relief recovery

The global markets have been a big bloodbath as Republican candidate, Donald Trump, has been elected the 45th President of the United States.

 

Although the knee-jerk market reaction was comparable to Brexit night, the global markets bind up wounds much faster than the UK’s June 23rd referendum.

 

Donald Trump’s first speech as the US President triggered optimism across the markets, given that Trump delivered a fairly balanced discourse, compared to the very sharp tone he had displayed during his election campaign.

 

A substantial correction is underway after equity indices and futures got hammered in Asian trading.

 

The FTSE opened on the downside, yet part of the negativity has already been priced out.

 

Basic materials (+2.19%) rose as commodities rebounded. Copper futures rallied 1.66%; iron ore spiked 3.65%, while zinc gained 0.40%.

 

Oil markets remained in the red, as global optimism failed to convince oil traders, who remain focused on the ability to record sustainable gains given the OPEC uncertainties.

 

Royal Dutch Shell (-1.75%) and BP (-1.81%) extended losses.

  

The UK’s leading banks traded south HSBC (-2.70%), Barclays (-2.55%), Lloyds (-2.22%), despite the expectation that higher bond yields might be positive for the banking revenues. The risks remain high.

 

HSBC (-2.70%), Barclays (-2.55%), Lloyds (-2.22%)

 

Healthcare stocks gained in the European open on the back of Trump victory.

 

Shire (+4.49%), GlaxoSmithKline (+1.83%), AstraZeneca (+2.22%)

 

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