>> So much for a Trump slump. Global markets rebounding after the initial shock of the US election result. Wall Street hitting record highs, European shares heading the same way Thursday. Commodities, including copper and oil, higher. The dollar recovering. It's all a surprise to observers who had predicted US shares would slide by 10% or more.
Reuters' markets editor, Jamie McGeever, says traders are focusing on Trump's spending plans.>> There's a running assumption that he will cut taxes, he will cut corporate taxes, and he will increase spending on growth and infrastructure projects. So, add that all together and investors are expecting a huge fiscal boost.
>> Over the longer term, investors still have big concerns about Trump's economic policies. He's threatened to tear up trade agreements, including NAFTA. He could spark a trade war with China if he goes through with threats to label it a currency manipulator. Tax cuts and a big spending spree could blow a hole in US public finances.
Right now though, no one really knows what Trump will do.>> So far there's been zero visibility, zero clarity. That will come in the weeks and months ahead when Trump names his economic team. His trade secretary, for example, and his secretary of state. Then we'll get a bit more clarity on the direction of economic policy and foreign policy.
>> Sterling, one surprise gainer over the past 24 hours. Trump's win making Brexit Britain looking less unusual. That's helped the pound recover some ground against the dollar and euro. With uncertain times ahead, there are likely to be many more unexpected winners and losers.