Contrary to what is predicted by experts of the market, the New York stock Exchange has not collapsed after the election of Donald Trump to the american presidency. Of course it has opened slightly in the red, but investors soon took over their minds. In the end, the Dow Jones rose 1.40% and finished 18.589,69 points, near (fifty points only) of its closing record ! The Nasdaq has gained 1,11% 5.251,07 points.
“This is a reaction particularly unexpected for the Exchange (…) that tries to digest the ramifications of the unexpected victory of Trump,” admitted David Levy, of First Republic Advisors. Since Tuesday evening and the end of the u.s. elections, the markets are changing on a “roller coaster”, has he recalled.
The world spots, on which the investors had a large preference to the idea of a victory of the democratic party, Hillary Clinton, they first dropped, as happened for the election of unplanned Donald Trump, but Wall Street quickly found momentum after some hesitation at the opening and then accelerate.
“It is now fixed… Even if a lot of investors are not satisfied with the winner,” summed up Sam Stovall. “This is a good opportunity to pass on the purchase. A lot of people had recommended to enjoy the decline.”
The reversal was susceptible of other assets. Traditional safe-haven, the bond market collapsed after jumping in the night : the return of the good 10-year Treasury jumped to 2,071% compared to 1,858% Tuesday night, and that good for 30 years 2,862%, compared to 2,619% previously.
conversely, after having unscrewed, the dollar rebounded against the euro, appearing to 1,0917 dollar for one euro for 1,1020 dollar the night before.
Among the items likely to reassure investors, digesting, moreover, a republican victory in legislative elections held at the same time, observers cited the willingness of Donald Trump to invest in infrastructure, as well as the remoteness of the risk constituted by a president bill Clinton for special sectors such as pharmaceutical laboratories.
“Now, the Exchange is trying to see who are the winners and losers and this will continue during the coming sessions,” concluded Mr. Levy. “But, for the moment, it is a very positive response.