We are at the start of the Trump era and history is now in the making. There are uncertain times ahead, everyone is trying to crystal ball what will happen. The majority of the experts got it wrong yesterday, so I think a wait and see position on what direction the Trump presidency will take is a reasonable immediate term approach with so many of the unknowns.
The questions are obvious; monetary policy, foreign policy, free trade, immigration, tariffs and protectionism, health, defense to name a few.
There were several predictions that the market would be effected if Trump won and we weren’t let down. The interesting element of the charts below is the speed of recovery. If you took a flight from NYC to Sydney last night you would have thought that nothing had happened.
The chart below looks at how the SFE and FX reacted yesterday and overnight.
Highlights:
SFE:
- Market high of 5299 points at 12.08pm
- Bottomed at 5029 points at 2.29pm
- Trump speech at 6.30pm and the market continued to recover regaining all the losses during the day
FX:
- The FX market high of 0.777 at 8.24am
- The low of 0.758 at 3.53pm
- Traded well during Trumps acceptance speech and then held and continued to trade between 0.762 and 0.769 ever since
Chart of the Day:
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