Which country had benefited from Donald Trump Stock Rally?

8 November 2016 was pre-result day for US Presidential election. A month later after Donald Trump won the presidential race, the global equity markets rose while fixed income (bonds) declined. US stocks rallied. Japan’s Nikkei 225 and larger European bourses (Germany, France) benefited too.

Stock Indices 8-Nov-16 9-Dec-16 Change
Nikkei 225 (Japan) 17,171.38 18,996.37 10.6%
Dow Jones (USA) 18,332.74 19,756.85 7.8%
Germany DAX 10,482.32 11,203.63 6.9%
CAC 40 (France) 4,476.89 4,764.07 6.4%
S&P 500 (USA) 2,139.56 2,259.53 5.6%
Australia All Ordinaries 5,342.20 5,615.80 5.1%
Nasdaq (USA) 5,193.49 5,444.50 4.8%
STI (Singapore) 2,820.24 2,956.13 4.8%
Shanghai Composite 3,147.89 3,232.88 2.7%
Taiwan Weighted 9,217.42 9,392.68 1.9%
FTSE100 (UK) 6,843.10 6,954.21 1.6%
Kospi (Korea) 2,003.38 2,024.69 1.1%
Hang Seng (HK) 22,909.47 22,760.98 -0.6%
Mumbai BSESN 27,591.14 26,747.18 -3.1%

The Straits Times Index (STI) was up 4.8% during this period.

However when we look at Year-to-Date changes to the stock indices from the start of 2016, it was a different picture. Except for the US stock markets, some markets were playing catch-up in the month after the US presidential election.

Stock Indices 31-Dec-15 9-Dec-16 Change
Dow Jones (USA) 17,425.03 19,756.85 13.4%
Taiwan Weighted 8,338.06 9,392.68 12.6%
FTSE100 (UK) 6,242.32 6,954.21 11.4%
S&P 500 (USA) 2,043.94 2,259.53 10.5%
Nasdaq (USA) 5,007.41 5,444.50 8.7%
Australia All Ordinaries 5,344.60 5,615.80 5.1%
Germany DAX 10,743.01 11,203.63 4.3%
Hang Seng (HK) 21,914.40 22,760.98 3.9%
Kospi (Korea) 1,961.31 2,024.69 3.2%
CAC 40 (France) 4,637.06 4,764.07 2.7%
STI (Singapore) 2,882.73 2,956.13 2.5%
Mumbai BSESN 26,117.54 26,747.18 2.4%
Nikkei 225 (Japan) 19,033.71 18,996.37 -0.2%
Shanghai Composite 3,546.13 3,232.88 -8.8%

Nikkei 225 Index was doing catch-up in the last month but still negative from the start of the year. Shanghai Composite was still down 8.8%. Singapore’s STI was up only 2.5%.

It would be interesting to see the end of 2016. Would this stock rally continue?

Copyright © 2016, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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