The stock market bloodbath that was expected following Donald Trump’s electoral victory has not materialised, largely due to rocketing pharmaceutical and precious metals mining stocks.
The FTSE 100, which closed last night at 6,843, slumped early doors to 6,696, but has since recovered to around 6,773.
Investors are predictably seeking the safety of defensive stocks such as Fresnillo PLC (LON:FRES), up 9%, and Randgold Resources Limited (LON:RRS), up 7%, as the dust settles following Trump’s triumph.
They are joined at the top end of the Footsie leader board by pharmaceuticals stocks, which are wanted – not because Trump won, but because Hillary Clinton did not.
Clinton had pledged to clobber the pharmaceutical companies should she be elected, and with that threat removed the market has stampeded back into drugs companies shares, which are, in any case, traditionally viewed as defensive holdings.
Story by ProactiveInvestors