Early Review of Financial Impact of the US Elections
Donald Trump has won the US Presidential Election, beating Hilary Clinton, and already we are seeing some initial reactions in the financial world with slight falls in markets around the globe but not the turmoil many investors had predicted.
The markets were caught off guard on Wednesday morning as key states voted in favour of the republican candidate; global financial markets have fallen in value with the US dollar and US equity futures dropping.
2016 has seen its fair share of political surprises, however this one may be the biggest to date – having emerged as (the somewhat unexpected) winner, Donald Trump will take office as President in January 2017 with US Congress (both the Senate and the House of Representatives) fully under republican control.
The result has already called into question the ability of forecasters to accurately predict outcomes and capture the extent of public discord and frustration with Western democracies. The outcome can be seen as a vote against the political establishment from a large section of society that is angry that policy has done little to aid economic recovery following the global financial crisis. It is likely that there will be policy changes now and, although it is difficult to have immediate clarity on what these will be, we should expect a more inclusive domestic growth agenda will emerge.