Donald Trump’s victory in the U.S. presidential election, along with a Republican-controlled U.S. Senate and House of Representatives, have increased uncertainty for financial markets and investors.
Here’s what Canada’s investment industry has to say following the results of the U.S. elections:
“The results of the U.S. elections add an additional level of uncertainty to the global economy. As a result, we expect to see increased volatility in the months ahead until the economic policy stance of Mr. Trump’s administration becomes clearer.”
— Caisse de dépôt et placement du Québec in a statement
“[President-Elect Donald Trump’s] protectionist tendencies are likely to lead to less trade, potentially lower corporate earnings growth (particularly for large multi-national companies) and higher prices for consumers, plus they may slow economic growth, especially if China retaliates with tariffs of its own.”
— Bruce Cooper, CEO and chief investment officer, TD Asset Management, in a white paper
“No economic news of importance is expected today, which is probably a good thing, as it will give markets a chance to dust themselves off from the turmoil of election night.”
— Xavier Villemaire, associate director, risk management solutions group, National Bank Financial Markets
“It is by no means sure that [President-Elect Donald Trump] will be able to muster the support necessary to enact the sweeping reforms he has proposed to areas across the policy spectrum, including immigration, trade, health care, energy, personal and corporate taxes and financial regulation, to name only a few.”
— Karen Dunn Kelley, senior managing director of investments, Invesco Ltd., in a blog post
“Banks and the broader financial services industry may face the prospect of regulatory relief compared to sundry measures that have restricted growth in recent years. At the top of the list may be Dodd-Frank.”
— Bank of Nova Scotia special report
“The sum total of President-Elect [Donald] Trump’s policy proposals would be positive for Canada and Canadian stocks, at least for a time. Lower tax rates, increased infrastructure spending, and a pro-oil platform should promote U.S. growth and flow through favourably to Canada and Canadian stocks. On the flip side, trade barriers with China and the U.S.’s NAFTA partners could act as headwinds to growth and both directly and indirectly negatively impact Canada.”
— RBC Capital Markets report
“[President-Elect Donald] Trump’s proposals lean toward big tax cuts, increased spending on infrastructure, renegotiating trade deals, repealing the Affordable Care Act, reducing immigration, and cutting regulation in the banking and energy industries. This comes at the risk of a massive increase in the budget deficit and major disruptions to trade. Whether the Republican-led House and Senate opt to scale back the bulk of his proposals will ultimately decide the economic outcome.”
— BMO Capital Markets special report
More to come.
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