9th November 2016

How have markets reacted to the US election result?

Americans might well have been celebrating or commiserating Donald Trump’s victory but it has been a busy day in the stock markets across Europe, Asia and the US. So what are the key trends and did Trump make a stench in the markets?

FTSE 100 recovers from red mist

The market view is a snapshot in time and is not a representation of past or future performance

After initial falls in the FTSE 100 evoked memories of 24th June, the UK’s leading index stabilised and traded flat. In early movements many major companies lost value as the scramble to price-in Trump’s victory took effect; the result was a rather angry looking heatmap.

The market view is a snapshot in time and is not a representation of past or future performance

Just over an hour later, things were looking a little steadier with many of these companies clawing back initial losses.

The market view is a snapshot in time and is not a representation of past or future performance

As the morning progressed very little changed and by lunchtime valuations appeared to settle into place for the day.

The market view is a snapshot in time and is not a representation of past or future performance

As the opening of the US stock markets approached, a number of the FTSE 100 companies continued their recovery; especially the financials.

The market view is a snapshot in time and is not a representation of past or future performance

In the immediate aftermath of the US markets opening, financials completed their reverse from losses earlier in the day. In fact, across the entire heatmap, things looked a lot calmer for many of the companies.

The market view is a snapshot in time and is not a representation of past or future performance

It’s not all about Trump today. While it might not seem like it, there are other things going on today and for some companies it wasn’t great news. The two companies in the darkest hue of red have remained so because of their latest earnings reports.

The market view is a snapshot in time and is not a representation of past or future performance

Moments before the UK markets closed we were presented with a much more balanced heatmap. It demonstrated an impressive recovery – possibly because we have been here before this year (back in June).

What are TD customers trading?

The top ten most traded stocks by TD Direct Investing customers produced a familiar picture, a further indication that the shock of his win was short-lived. There was a greater focus on commodities stocks – making up five of the top ten – but other than that things were very much, as you were.

Stock name Symbol % of TD trades today at noon Buy:Sell Ratio*
Glencore Plc GLEN 3.2%
Lloyds Banking Group Plc LLOY 3.0%
Randgold Resources RRS 2.7%
Barclays BARC 2.2%
Centamin CEY 1.9%
Redcentric Plc RCN 1.7%
Shire Plc SHP 1.6%
Rio Tinto RIO 1.4%
Boohoo.com Plc BOO 1.4%
BP BP. 1.3%

Our most popular investments should not be taken as a personal recommendation to buy or sell a particular stock. Instead it is simply an indication of the general buying and selling trends of our customers observed in the period stated.

Trump Bump rolls on for US listed Pharma, banks and defence stocks

After a busy start to the trading day in London, the Dow Jones Index opened virtually unchanged (contrary to the futures market view earlier in the day), as the positive themes outweighed the negative sentiments.

This positive start has continued – the Dow Jones Index is trading up at time of writing (4:30GMT).

US Sectors Impact

Over in New York, the healthcare and financial sectors stand out in the green in early trading, both seen as winners from Trump’s expected policy moves. Other highlights include defence and construction stocks as big government spending gets a spotlight as the engines for jobs and growth in America.


US Heatmap at 4.30pm GMT (shows S&P100)
The market view is a snapshot in time and is not a representation of past or future performance

Asian markets set the trend

There was a similar theme in other European markets and even the Asian markets, which of course opened earlier and have since closed.

The Nikkei 225 suffered major losses as the reality of a Trump tenure took shape but has since recovered. The same can be said of the Shanghai Composite, which was only marginally down when it closed.

Those fearing a repeat of Brexit hysteria can, for the moment anyway, take a deep breath.

What do fund managers think of Trump’s election?

Visit our website Thursday morning to hear what other fund managers and analysts had to say.

These are the views and opinions of the fund managers and do not represent those of TD Direct Investing.

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