The FTSE has been adding to yesterday’s US election rally and mirrors the “boom” in the aftermath of June’s vote to leave the European Union, rising 1 per cent in early trading this morning.
But head of equity strategy at stockbroker Interactive Investor Lee Wild warns there is a sense this could be the “calm before the storm”.
Following the shock win of Republican nominee Donald Trump, miners Glencore and Anglo American led trading this morning, while Legal & General and Prudential also rallied alongside big banks.
Wild says parallels continue with the “boom” following Brexit, despite geopolitical fears and “millions” of Americans protesting his election.
Wild also believes the FTSE could very quickly reach record levels.
“Perception now is that the controversial multi-billionaire TV presenter and property mogul could be good for business; and talk of tax cuts and heavy spending on infrastructure would certainly be good for growth.
“There’ll be no wall along the Mexican border and most of Trump’s daft policies will never see the light of day.
“It’s why the FTSE 100 is adding to yesterday’s rally, passing a technical level where talk of a record high by Christmas is not crazy. It could happen much sooner.”
But Wild warns this could very much be the “calm before the storm”.
“After talking the talk, he’s gotta ‘walk the walk’, and Trump’s unpredictability and long list of potential flash points pose a real danger to markets.”