The U.S. dollar surged and U.S. stock futures hit record highs as investors bet on lower taxes and higher interest rates as Republican Donald Trump was elected U.S. president four years after he was voted out of the White House.HENDRIK DU TOIT, CEO, NINETY ONE:“He has a massive endorsement and will move much faster than before. The market will price that in very quickly. What’s really important here is the markets like clarity, and they have that.
“U.S. rates have obviously sold off given expectations of more fiscal loosening in the U.S., and probably slightly higher inflation due to tariffs.” “Trump’s universal tariffs plan is also expected to have a substantial impact on the already fragile euro zone economy, while the inflationary effects for Europe will be more limited. This could trigger an even more accelerated rate cutting cycle path from the ECB and will likely lead to a greater divergence between the US and European policy rates.”“Trump winning means tariffs which will adversely affect growth in Europe.
“If Trump can pass tax and spending bills first, then he doesn’t have to rush for the hardline policies against China, which come rather later. If Congress is controlled by Republicans Trump can prioritise economic stimulus measures.”“With Trump, market volatility is likely to pick up, so trading-wise, it does open up opportunities. The volatility comes from uncertainty surrounding how he intends to follow through on some of his campaign promises.