Early projections of the presidential election give Trump an overwhelming lead of the electoral and popular vote.
The mainstream media has seen 2024 election as to close to call, while bookmakers were quoting Trump as a clear favorite. Looking at the early projection of the vote, it seems the GOP candidate has secured a second term with a large majority.
FTSE is up 1% on the day, and the DOW is up over 2%, most global stock indices are higher today, the NIKKEI225 also gaining 2%. Cable channel FOX News called Trump the winner after he took the swing state of Pennsylvania.
This is the state many political analysts say a presidential candidate needs to secure due to the high number of electoral votes. Trump has already given his victory speech at a convention in Florida to an extremely joyous crowd.
As of writing Democrat party candidate Harris is yet to concede the victory to her opponent. It seems unlikely that with a large majority of ballots already counted in many states that the outcome could be positive for her.
FTSE
Will the FTSE rally last?
Looking at the components of the FTSE 250, J D Wetherspoon (JDW) reported earnings. Sales were up 7.6% this year compared to 2023. Revenue is up 5.7%, but net income is down 18% and the profit margin down 3.1% from 2023.
The mixed report has taken the stock higher by 1.76%, helped mostly by the broader strength of the market. What remains to be seen after the euphoria recedes is how investors continue to judge UK fundamentals.
The FTSE has been plagued lately by a budget that is seen by many analysts as inflationary. Some economists have the opinion that the Labour party’s plans will stifle growth instead of promoting it.
The reasoning comes from the view that it is more effective to put money into private hands than leave it to the government to create wealth.