Thursday, 10th November: The delayed Donald Trump hangover kicked in on Thursday as despite starting the day more than 1% ahead, the FTSE 100 pared back, free-falling in to the red to eventually close -1.21%. The large winners of yesterday were some of today’s biggest losers as both Fresnillo and Randgold Resources suffered double digit losses. Mediclinic International (who provide hospital related clinical services) suffered the biggest fall of the day, lower by 15% as half year results disappointed investors, with not much optimism on the horizon for the eventual full year results. The internationally heavy index suffered as the pound made ground against the dollar, moving ahead of $1.25 in late afternoon trading.
Asian markets had already closed when Trump’s win was announced and so played a bit of catch up in overnight trading. The Nikkei jumped higher by 6.73%, its biggest single-day gain since February 15th, as investors looked at the positives of Trump’s appointment – his possible push on further infrastructure spending looks set to benefit infrastructure companies, and their component makers, both in the US and internationally too. The yen has continued to be weaker today, moving close to ¥107, as, in a reversal to yesterday’s movement, the wek yen boosted export-related names on the Tokyo stock market.
Gold reversed all of yesterday’s gains as the dollar gained strength against most currencies. The precious metal retreated as equity markets in the US continued to get stronger – the Dow Jones hitting record highs soon after the US open. The S&P 500 is currently trading flat but the Nasdaq fell by more than 2% briefly as the so-called FANG stocks (Facebook, Amazon, Netflix and Alphabet) all fell more than 3%.