Trump's surprise win rattles markets

The unexpected victory of Donald Trump in the US presidential election has sent shockwaves through global markets, with European stocks tumbling, the Mexican peso hitting record lows, and the Japanese yen depreciating by 5.4% against the dollar. This surprising turn of events has left many in disbelief, as investors and analysts alike grapple with the potential implications of a Trump presidency. CNBC Africa spoke with Muhammad Nala, Head of Strategic Research at Nedbank Corporate and Investment Bank, and Deon Gouws, Chief Investment Officer at Credo Group, to gain insight into the impact of Trump's win. Nala expressed his astonishment at the outcome of the election, stating, 'Hands down no. I mean, at the end of the day, it's still a little surreal. You know, when you see it, 45th president of the United States, I want to pinch myself to wake up from what's hopefully a bad dream.' He highlighted the historic nature of Trump's victory, emphasizing that the US remains the world's largest economy and predicting potential challenges for pollsters in the future. Gouws echoed Nala's sentiments, emphasizing the global implications of Trump's win and the uncertainty it brings. He described the Republican sweep of the presidency, Senate, and House of Representatives as a rare occurrence that could impact Trump's ability to implement his policies. Both experts pointed to the potential consequences of a Trump presidency on global trade and emerging markets, particularly citing the implications for free trade agreements like Agoa. They emphasized the need for renegotiation of trade deals and the potential shift towards greater trade relations with China in response to a more isolationist US under Trump. Despite the initial market turmoil in the wake of the election results, with S&P futures hitting limit down, there has been some stabilization as investors digest the news. Nala highlighted the challenges ahead for Trump in delivering on his promises of job creation and infrastructure investment, noting the complex economic landscape he is inheriting. 'It's certainly not going to be easy. I mean, it's quite easy to talk when you're campaigning. But reality will certainly knock you off,' he said. The transition to a Trump administration is expected to usher in a shift from monetary to fiscal stimulus, with implications for US debt levels and monetary policy. Trump's stance on Federal Reserve policy and his potential appointees may also shape the economic outlook in the coming years. The uncertainties surrounding Trump's presidency and his policies are likely to dominate market discussions in the months ahead, as investors and analysts navigate a new era of US economic and trade relations.