European markets are popping higher on Thursday morning, seemingly shrugging off any anxiety over Donald Trump’s shock election victory on Wednesday.
The main stock markets across Europe are seeing gains of over 1% after just 45 minutes of trading on Thursday morning, taking the lead from resurgent Asian markets and a record high for the Dow overnight.
It comes despite the fact that Trump, an untested politician with an unclear policy agenda, caused a sharp drop in most markets when his victory became clear yesterday morning. Stocks recovered throughout the day and ended positively.
The FTSE 100 is up 1.09% at 8.45 a.m. GMT (3.45 a.m. ET):
The Euro Stoxx 50, which tracks the 50 biggest stocks across Europe, is up 1.55% at the same time:
And here’s how the rest of Europe’s major indices look at the same time — big gains across the board:
Connor Campbell, market analyst at SpreadEx, says in an email on Thursday morning: “Just as Trump’s victory is akin to a super-sized Brexit, the markets seem to have worked through the kind of fluctuations they saw following June’s referendum in record time, compressing the sharp fall to all-time high-nearing rebound into around 24 hours.
“That means the FTSE, rising more than 1%, is back on its way to 7000, while the DAX, at just below 10800, is only a few points from its 2016 high.”
Opinion on what Trump will mean for the US and global economies is hugely divided. HSBC’s chief US economist said in a note on Wednesday that Trump’s announced policies would put the US into recession if all enacted but Deutsche Bank strategist Jim Reid says in his morning email on Thursday: “This is the most positive I’ve felt on the medium-term prospects for US growth for perhaps a decade.”
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