“It is equally possible that these campaign rally cries are abandoned with the responsibility of power. But the real concern is that he will do what he says.
“The initial market reaction is consistent with the behaviour we have seen in responses to poll trends. Over subsequent weeks and months, these moves may well reverse.
“On domestic economic policy, the only policies where Trump is likely to secure Congressional support would be on tax-cutting and deregulation - which are likely capital-friendly.
“We might also witness pro-cyclical fiscal policy for the first time since Reagan, which would profoundly undermine bond markets. I would discount Trump's anti-Fed rhetoric. Ironically, looser fiscal policy suits the Fed, because they want to normalise interest rates.
“The greatest irony of this latest outpouring of populism may well be a set of policies which favour capital over labour, and look more Keynesian than neo-liberal.”
Richard Stone, chief executive of The Share Centre, said markets will likely react to President Trump in similar fashion to Brexit.
Mr Stone said: “The result is a surprise and Donald Trump is seen as being likely to have a strong negative impact on global trade if he decides to seek to renegotiate international trade deals, withdraw from international agreements such as that recently made on climate change, and adopt a more aggressive ‘America first’ foreign policy stance.
“The markets will, for instance, reflect on the potential impact on all those US companies that have moved their manufacturing capability to Mexico of a wall on the Mexican border. For example, Ford has some of its manufacturing and assembly facilities in Mexico.
“Similar to Brexit there is every prospect that the market will over-react.
“Donald Trump is above all else, a pragmatic businessman. He has spent his life negotiating and in doing so knows the first statement of your position is not what you expect as the outcome. For example, the idea of a wall between Mexico and the US may sound outrageous, but it appeals to those concerned at the rate of immigration and illegal immigration in particular.
“In reality there are already over 580 miles of wall and fences along the Mexico/US border and the end position after negotiation may simply be a reinforcing of those existing controls and some additional wall sections to replace fencing sections.
“Over the coming days and months investors will also look to see the extent to which Donald Trump appears more moderate and conciliatory. For example, investors and markets would likely be concerned if Janet Yellen leaves the Federal Reserve early given some of Donald Trump’s rhetoric during the campaign.
“In short, in the near term markets globally will react to this shock result badly. It was not one the press or commentators outside of the US really saw coming and fears will abound as to the impact on global trade and global economic growth.
