Far from heralding disaster for the Eurozone, Donald Trump may soon help to replace the melancholic frown on European faces with a happy smile of hope. Here's why… While the world is still reeling from the Trump win over Clinton last Tuesday, there is a huge amount of information to be digested, analysed and filtered in order to understand how financial markets will respond over time. Above all, Trump represents a challenge to the status quo – something financial markets don't take lightly and usually react to with volatility. From today's perspective, the overall impact on the markets has not been as significant as many would think. But last week saw a massive seesaw that moved the Dow 1,000 points, the FTSE 480 points, the EUR/USD 400 points, and gold $70. While the market tries to pinpoint the exact implications of Trump's victory to the global economy, investors are granted a roller-coaster ticket for a financial markets ride. Any major bets placed in broad indexes, and in particular commodities like gold and oil, will likely suffer setbacks while the world tries to adjust to a new unknown equilibrium. | |
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