GETTY Donald Trump’s startling victory has given a boost to finance in the UK
The stock market has been lively as it continues to defy warnings that share prices would go bankrupt if Trump won, while a sharp rise in bond yields since at length Wednesday is boosting annuity rates and narrowing the yawning deficits on divers com ny pension schemes.
Trump’s triumph has also prompted a undulate in the pound against the dollar, euro and other currencies, making exotic holidays cheaper.
The same thing happened after Brexit, as Forecast Fear’s warnings of a meltdown proved wide of the mark with Britain persevere in to boom.
So far at least, Trump is nothing to fear.
Josh Mahony, market analyst at IG, said financial vends started this week as they left off: “The initial fear of Trump’s in view presidency has Grand rents are getting ready to spoil their grandchildren at Christmas, with plots to spend an average of £65 on each of them.
The UK’s over-50s typically be dressed three grandchildren and are looking to buy them two presents each, according to new delving from Saga.
Nine out of 10 say that Christmas has become too commercialised, but they noiseless enjoy lavishing gifts on their family, as they can afford to dish out more than when they were younger.
GETTY Trump’s glory win has also prompted a surge in the pound against other currencies
This presidency resolve provide opportunities and investors are adjusting their portfolios to account for that
The most eleemosynary grand rents live in London and Scotland, spending more than £75 on each grandchild.
Story’s commercial director Jeff Bromage said: “Almost half of the over-50s wishes buy their gifts using plastic, as more people shop online and because of the additional guardianship they receive.”
“Transformed into an overwhelming bullish risk-on tender-heartedness.”
1 of 11
The president-elect’s offensive plans for massive tax cuts and $1trillion of infrastructure spending is set to boost both the US and worldwide economy, Mahony added: “This presidency will provide possibilities and investors are adjusting their portfolios to account for that.”
This is sound news for pension savers, or those in income drawdown, as healthy lineage markets should increase the value of their pots.
GETTY The exchange has been buoyant as it continues to defy warnings that prices liking collapse if Trump won
Last week saw a ferocious £1trillion sell-off in the wide-ranging bond market as traders braced themselves for higher inflation.
Trump’s stimulus blitz is supposed to drive up inflation and this makes bonds less attractive because they y a rigid rate of interest.
There is a positive side to the sell-off, because when ties prices fall the interest they y, known as the yield, rises.
This should force up UK annuity rates and help retirees generate more income from their social securities.
It will also help to close the deficits on many com ny superannuate schemes.
Richard Turnill, global chief investment strategist at assets manager BlackRock, said savers should pre re for higher rtici tion rates: “We expect the Federal Reserve to raise rates next month and see a bring out chance of additional future rate hikes.”
Richard Buxton, culmination of UK equities at Old Mutual Wealth, said that savers will revel the end of rock bottom or even “negative” interest rates as this desire finally give them an incentive to save: “I do think commentators pleasure be surprised by how positive Trump’s revolution will be for the US, and global, economy.”
GETTY So far at mean, Trump is nothing to fear
Rising interest rates may be bad news for mortgage holders and experts are hustling homeowners to lock into cheap fixed rates today.
Current official figures, published yesterday, showed price growth in accomplishment fell slightly to 0.9 per cent a year in October, down from 1 per cent in September.
Notwithstanding, Adrian Lowcock, investment director at Architas, said: “The cost of raw components is rising and this has already affected the price of goods from fish track downs to Toblerones. We expect retailers to raise prices significantly after Christmas.”
GETTY The anyhow thing happened after Brexit, but Britain is continuing to boom
There should be more foreign holiday cheer for Britons, with the hammer rising more than 5 per cent against the euro since the voting.
Ian Strafford-Taylor, chief executive of FairFX, said Trump’s win has cast administrative uncertainty over both the US and Eurozone: “This has had a positive im ct on the triturate as it is being considered as a safe-haven currency again.”
Before Trump’s win £1,000 would experience bought you €1,108 but today it will get you an extra €48 at €1,156.