Trump victory: Implications for commodities market

Following the recent U.S. presidential election that resulted in a Trump victory, the commodity markets have experienced significant fluctuations. The election outcome, coupled with a strengthened U.S. dollar and China's recent stimulus, has major implications for various commodities such as oil, gold, copper, and uranium. John Haslett, Portfolio Manager and COO of Graphite Asset Advisory, joined CNBC Africa to provide insights into the outlook for the commodity market. Haslett highlighted the challenges posed by the uncertainty introduced by Trump's win and emphasized the importance of understanding the market's reaction to the dollar's movements. He noted that gold, in particular, saw a surprise sell-off post-election despite the initial bullish sentiment leading up to the event. The interest rate environment and the dollar's strength played a significant role in this decline. Similarly, the oil market has been marked by sideways movement following the election due to the prevailing uncertainty regarding Trump's policies and their potential impact. Haslett also discussed the implications of a Trump victory on the copper market. He acknowledged the initial sell-off in copper post-election, which was swiftly followed by a rebound. Haslett attributed this rebound to China's influence as a major driver of the copper market. He expressed concerns about the potential impact of Trump's policies on green energy initiatives in the U.S., which could affect copper demand in the long term. However, he underscored the importance of China, which accounts for 65 percent of global copper consumption, in driving the market forward. Despite short-term volatility, Haslett remains optimistic about the long-term outlook for copper, citing constraints on the supply side and increasing demand from China's transition to clean energy. As the interview concluded, there was a mention of a potential future discussion focusing on developments in the gold market. The question of whether gold is a risk-on or risk-off asset in light of recent movements was left open for exploration in subsequent conversations. Haslett's insights shed light on the complex interplay of geopolitical events, economic policies, and market dynamics that shape the commodity landscape in the wake of a Trump victory.