A new US President: what about our finances?

If you’re planning to get a new card for your holiday spending, check your Experian credit report before applyingNow that the US presidential election has reached its conclusion, what does a victory for Donald Trump mean for UK and global finances?

A Clinton win had been on the cards for some time, but Trump’s victory surprised many all over the world.

Before election day
After she was cleared earlier in the week by the FBI of criminal wrongdoing with regard to emails, the dollar immediately rose in value, with US markets easing back on risk-aversion measures.

And the FTSE-100 index gained £28 billion on Monday 7 November, after a seven-week low reached last Friday. Leading analysts suggested that further gains would be likely if Clinton won.

The Telegraph suggested that a Trump victory could give the pound a short-term boost, as the dollar flounders in the wake of so much uncertainty. They also quoted Simon Johnson, a former IMF Chief Economist, saying that the protectionist policies that a Trump presidency plans to follow could take the world back to the Great Depression in terms of the impact on trade and consequences”.

After the result
World financial markets were up and down for a few hours. At first, the London stock market fell by 2%, but by mid-morning in the UK things had settled down somewhat and it had recovered its losses.

The dollar wobbled initially against the pound, but gradually started to strengthen – anyone who decided to buy their dollar holiday money in the early hours may have got a decent deal.  The dollar is expected to recover long-term.

Some experts suggest that a Trump presidency could mean lower fuel prices in Europe, by reducing environmental restrictions.

Outside the European Union, the US is the UK’s biggest export market – and there is speculation that in the current post-exit vote climate, with the pound at a low ebb, the Telegraph has suggested the US could trade more closely with a more competitive UK market.

Registering to vote could help you get credit
British citizens who don’t hold US citizenship can’t vote in this election of course, but remember that if you are eligible to vote in the UK, then registering to vote can help improve your Experian Credit Score, and give you a better chance of getting credit.

Being on the Electoral Roll makes it easier for banks and financial institutions to confirm your identity, and not being registered will reduce your Experian Credit Score.

Come back to this page for more news on the US Election and its possible impact on global finances.

 

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