PA ANALYSIS: Inflationary fears as Trump victory spooks bond investors
Bond investors are strapped in for an explosive month ahead as more questions were raised over the next Fed rate rise, following today’s US election result.
Bond investors are strapped in for an explosive month ahead as more questions were raised over the next Fed rate rise, following today’s US election result.
Active fund managers are largely sanguine but braced for volatility over the coming weeks.
Healthcare and defence were the immediate winners at sector level following Donald Trump’s controversial victory as the outsider Republican candidate was named President elect of the United States.
Donald Trump has won the US presidential election, riding a wave of global anti-establishment sentiment and in a Brexit-like manner, upending the status quo. Republicans also won a majority in both the Senate and House of Representatives.
Tilney Bestinvest’s clients continued to put money into US tracker index funds in October despite markets being spooked by the potential outcome of the presidential election.
Friday’s non-farm payroll release was a mixed bag but analysts were encouraged by the drop in unemployment levels.
American shares have broadly dipped as investors brace themselves for the possibility of an unexpected election victory by a certain real estate tycoon.
European investors have been rather apathetic about US equities for an extended period. This is unlikely to change if Hillary Clinton wins the presidential elections. A Trump win, however, will probably prompt a pronounced shift in sentiment.
New US investors in gold increased by 81% over the month of October as the price of bullion fell to its lowest level since April at $1266 per ounce.
BlackRock has identified a higher correlation between equity and bond prices and the US election as the greatest worries in the short-term.
Nomura Asset Management’s (NAM) Richard Hodges is braced for what he believes is the biggest potential risk currently facing global markets – a victory for Donald Trump.
If Donald Trump gets elected to the US presidency, this could turn out to be a blessing for the nation’s economy according to some fund managers, but others are worried.