Asked whether she was surprised at how quickly the FTSE100 recovered following the election of Donald Trump, the independent market strategist Brenda Kelly told Proactive: ”I think you have to take a look at the make up of the FTSE to explain some of that.
”Certainly the big moves we saw from the likes of gold and some of the metals overnight on the back of the Trump victory have helped the miners push higher this morning. But across the board if we’re comparing this to the state of play following the Brexit referendum the markets have adjusted accordingly for the time being.”
She added that we do have a little while left before he’s finally inaugurated and we’ll have to see what administration is put in place around him.
Kelly said the bigger question going forward for the markets is what the Fed’s next rate move will be.
”Whether it’ll be to hike or to cut rates – the markets are certainly not discounting any sort of rate hike this year … it’s going to be an interesting bringing together of fiscal and monetary policy and how the U.S. can move forward from here”.