An analyst assessed the impact of the US election results on stock markets

After the U.S. presidential election, the U.S. stock indices have reached historic highs, financial analyst and trader Artem Zvyozdin told Izvestia. At the same time, the election results had a positive impact on the Mosbirji index, because many investors expect from the US President-elect Donald Trump a different approach to resolving the Ukrainian conflict, the expert explained.

"The world markets shook quite seriously, because Trump promised in his program to reduce bureaucracy in the state system, especially for business, to reduce taxes and generally stimulate investment and business activity in every possible way. Also, when he was already president in 2016-2020, he was known as an ardent supporter of low interest rates," the analyst said.

At the same time, stock indices in the U.S. soared by 5-6% and updated the historical maximum. But, according to the trader, the situation on other global markets was rather "bearish" - European and Asian indices declined after the U.S. elections within 5%, while volatility everywhere was relatively low. The Moscow Exchange index grew and managed to return to the important intermediate level of 2750 points. But later declined and on November 22 is at the level of 2580 points.

But such positivity was due to the fact that many investors expect Trump to take a different approach to resolving the Ukrainian conflict, the expert explained.

"In the market there were expectations of a possible soon end of the conflict and even a possible easing of some anti-Russian sanctions," - specified the analyst.

He also specified that during the election period, when the Democratic Party candidate Kamalla Harris was considered the favorite, the Russian market was not under pressure and did not react in any way to political processes in the United States.

"This is due to the fact that the Russian financial system, given the already imposed sanctions, has significantly disintegrated not only from Western, but global financial markets. This means that the Russian market has created a situation more favorable for bulls: the negative in terms of geopolitics is not perceived by investors (in a sense, they have already developed immunity), and the positive, even not the most obvious, leads to the growth of indices. Nevertheless, we should not expect that any change in the U.S. policy towards Russia can somehow radically turn the Russian market," Zvyozdin said.

In the absence of foreigners on the Moscow Exchange and closed to foreign investors, the Russian financial market is not able to react or follow trends in global markets, the expert believes.

Earlier, on November 16, Nikita Murleikin, investment consultant at VTB My Investments, told Izvestia that fluctuations on the stock market are influenced by psychological factors. Among them are fear and greed of investors, herd effect, impulsive decisions of investors.