US election 2016: Markets rally after shock of Donald Trump victory

US Presidential election: Markets rally after Donald Trump's victory

Donald Trump

Wednesday, November 9, 2016

The stock markets in the United States and around the world have rallied after the initial shock of Donald Trump's victory in the US presidential election. 

Global stock markets took a plunge as it became clear Trump was going to be the next American president, but at time of writing the Dow Jones Industrial Average and the S&P 500 index were up 0.3% and 0.2% respectively. 

In the UK, London's top flight on the stock exchange was 0.6% higher, and other European stocks were also trading higher, recovering after large opening falls

Connor Campbell, a financial analyst at Spreadex, claimed that Trump's victory speech appeared to have calmed the markets.

He said: "Fuelled by pharmaceuticals, miners and anything that may benefit from Trump's promised big infrastructure spend, Dow Jones, which was threatening to fall 800 points earlier in the day, gained a 20-point rise."

"So, what does this all mean? The narrative seems to be that Trump's presidential promises during his victory speech have reassured investors, allowing for the remarkable recovery seen this afternoon.

"The market may also be correcting the intensely negative gut reaction it had to the result, much as it did in the aftermath of Brexit."