UK US Analyst
Analyst: markets were down similar to Brexit
Story No.: 4065084
Source: AP TELEVISION
Dateline: London - 9 November 2016
Date: 11/09/2016 10:56 AM
London - 9 November 2016
1. Wide of the entrance of CMC Markets in the City of London
2. Various of Michael Hewson, Chief Market Analyst at CMC Markets at his desk, talking to a colleague
3. SOUNDBITE (English) Michael Hewson, Chief Market Analyst at CMC Markets:
"The initial reaction overnight was what you would expect, it was very similar to how Brexit played out: A very sharp fall in the markets, stock markets fell not an insignificant amount but they have rebounded somewhat. And I think what we have seen is the decline has been much more orderly than was the case in June when obviously there was a Brexit surprise. I think markets were caught a little off guard by Brexit, they haven't been caught as much off guard by this, because there was a concern that the pollsters might be wrong and it certainly proved to have been the case."
4. Various cutaways of Michael Hewson
5. SOUNDBITE (English) Michael Hewson, Chief Market Analyst at CMC Markets:
"Mr (Donald) Trump, some of his rhetoric has been, how shall we say, a little bit controversial. He is a unknown quantity, yes he is a businessman, but he's unpredictable and markets don't like unpredictability. Now, his acceptance speech was very emollient, it was very conciliatory and I think that has helped underpin markets."
6. Various of market boards
7. SOUNDBITE (English) Michael Hewson, Chief Market Analyst at CMC Markets:
"I think markets will remain very volatile, because ultimately I think this result if I could compare it to dropping a rock in a very large pound, it's gonna create an awful lot of ripples. Some sectors are going to do well, some probably not so well. Pharmaceutical stocks are doing well because I think there's a potential for Mr Trump to get rid of the Obamacare."
8. Various of the Euro versus USD
9. Close up on USD losing against the Japanese Yen
10. SOUNDBITE (English) Michael Hewson, Chief Market Analyst at CMC Markets:
"The dollar has sold off. It sold off a little bit. I think that's partially as a result of potentially the markets pricing out the prospect of a US rate rise. Also I think the political situation in the US I think is going to take a while for the markets to adjust to the fact that Mr Trump is the new president and that's why you are seeing gold prices rally quite sharply, they have come from their heights and I think that's why you've also seen the Yen and the Euro make gains as well."
11. Various of CMC Markets office
A market analyst told The Associated Press on Wednesday that the market reaction to the election of Donald Trump to US president has been more orderly than when Britain voted to leave the European Union in June.