It certainly was an eventful week with the eagerly anticipated results of the U.S. presidential election! On Tuesday, American voters elected Donald Trump the 45th President of the United States. His Republican Party also won the Senate and the House of Representatives, a first since 2005, which could make it easier to implement the new President's agenda.
Overnight from Tuesday to Wednesday as votes were being counted, international markets were swept up in a wave of highly generalized panic, as if they had not been prepared to see Trump elected. In concrete terms, during this short period of time, futures on U.S. equities lost the maximum permitted under trading rules or 5%. This was momentarily beneficial for safe havens such as the WE dollar and Treasury Bills_ However, calm quickly returned to markets. Investors appear to have understood that Trump's proposed program did not necessarily represent a catastrophe for the global economy. In his acceptance speech, the President-Elect focused more on budgetary stimulus measures based on massive investments in infrastructure rather than protectionism. Markets greeted these comments very favourably, as shown by the weekly gain of more than 15% on the S&P500, which was one of the best performances by WE equities since the beginning of the year Our economists believe that the Republican program could help the U.S. economy see growth above 2.5% in 2017.
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