Well, the results of ‘much talked about’ US elections have been declared and Donald Trump would be the 45th President. Finally, it is the end of a high-voltage drama. As the dust would get settled in the coming days, analysts and experts will be in a better position of analyzing the impacts of it. Experts think that market sentiments are going to make a big turmoil in the form of volatility and price movements. Nevertheless, it will largely depend on the outcome of this big event in the first six months of the new government.
Both candidates displayed characteristics that are polar opposite as far as economic and foreign policies are concerned. At one side Donald Trump talks about shaking up the political establishment in the US, at Hillary Clinton insisted on maintaining the Status Quo. As the decision has been declared out, it will be quite interesting to know the aftereffects.
Impact on currency
Donald Trump repeatedly talked about his intention of correcting the US economy. Since he always criticized about creating ‘so-called false appearance of healthy economy’; he would not like to follow the trends for sure. He also gives the indications of being protectionist as far as international trade issues are concerned. Therefore, his tenure may take the US Dollar to a further strong position.
As far as the impact on the UK economy is concerned, it would get benefited by the strong position of Dollar. Unlike other emerging currencies such as China and Mexico which may get rebound, the UK Currency may show a different trend. As Russian Ruble may also get benefited by the victory of Donald Trump, it may change the global equation in the coming times.
There have been discriminations and contradictions in his statements so far. Hence, it will take some time to get some clarity.
Equity and real estate market
Yes, the political stand of Donald Trump has been quite unpredictable politically. It is the reason; experts are unable to assess the exact impact on highly sensitive real estate and equity markets. Both these markets get affected by the market sentiments. Therefore, even small changes in the socio-economic environment make a severe impact.
Election of the US President is important from the perspective of the UK economy. After Brexit, the situation became volatile. It took a few months to get relieved from the situation. Factors such as setback in the international trade, price variation between the price of USD and GBP will be some critical factors. Since uncertainty will prevail in the US markets for at least three to six months, there will be a direct hit on the foreign investment in the UK properties.
Since the key economic points differ between the existing US government and the proposed one, the impact will be there on several key financial aspects in the UK. According to the experts of international politics and economic affairs, it is a major turning point in the history of the US and the world as a whole. The forthcoming years will be pretty exciting!