Trump's Election Impact: FTSE Fluctuations and Investor Concerns

The UK's FTSE 100 dipped due to losses in homebuilders and miners, despite global rally post-Trump's U.S. election win. While U.S. markets surged on deregulation hopes, concerns over inflation and tariffs affected currencies and European shares. Defence stocks rose, but homebuilders faced cost concerns.

The FTSE 100, a key indicator of the UK stock market, saw a decline of 0.1% on Wednesday. This drop was attributed to losses in shares of homebuilders and precious metal miners. Despite a global market boost prompted by Donald Trump's U.S. presidential election victory, the FTSE 100 couldn't maintain early gains, while the FTSE 250 midcap index rose by 0.3% after initial rallies of above 1%.

Trump's election marks a significant shift in U.S. leadership. U.S. markets responded positively, anticipating deregulation and lower corporate taxes. However, concerns over potential tariffs under a Trump administration negatively impacted currencies and European shares.

Investment analyst Russ Mould noted risks for investors, highlighting potential inflation's impact on corporate profits and interest rates. Defense stocks benefited, while homebuilder Persimmon experienced an 8.6% fall due to cost concerns. Focus shifts to monetary policy decisions from the Bank of England and U.S. Federal Reserve.

(With inputs from agencies.)