Trump has beaten Hilary Clinton to become the 45th President of the United States in a fairly overwhelming victory. Trump has taken almost a clean sweep of the battle states once again with pollsters much like the Brexit getting the vote completely wrong.
There will no doubt be a major inquiry into what went wrong with Hilary’s campaign considering Trump has been destroyed by the press over the last few months and has still proved victorious.
Very little market fallout
The stock markets and currency markets moved heavily once it became apparent that Trump was looking likely for the victory. The Asian market dropped as the only open platform with the FTSE regaining lost ground once it was a few hours into trading. There was talk of 10% losses for US markets and the USD however that has not come true as of yet. The US markets will be open in a few hours and it will be interesting to see what the initial fallout might be. In my opinion it seems unlikely there will be too much volatility as the uncertainty will come when Trump starts putting plans in place.
All eyes on the Federal Reserve
There was a general consensus before the vote that a Clinton victory would keep the chances of an interest hike very high. However, the reality of a Trump victory caused the market expectation to fall below 50% for a December rate hike. If the Chairlady Janet Yellen hints that here plans are still going to go ahead I would be confident of further US Dollar strength. Alternatively if the hike is kept on hold even longer than the year that has already passed since the first of four were announced then I think there could be significant weakness.