Trump shocker in a repeat of Brexit vote – Natixis

Jean-François Robin, Research Analyst at Natixis, suggests that it is the same story all over again, with a repeat of Brexit, as Donald Trump became the next President of the United State against all expectations.

Key Quotes

“Donald Trump has predicted it would be Brexit time ten: how right he was or how wrong were those who once again shrugged off his comments...”

“The market did not believe in this outcome and right until yesterday’s closing bell it was business as usual: I’m ok, everything is ok, nothing can happen, history won’t repeat itself, Brexit was the exception, US polling institutes are otherwise more sophisticated, etc.”

“Donald Trump not only had a comfortable victory, with wins in key states such as Florida and Pennsylvania, but he will preside over un undivided Congress (the House of Representatives, that was expected, but also the Senate, which some observers had said would easy pickings for Democrats). The market was unprepared and will therefore switch to risk off mode in coming days.”